Author Question: If a country's GDP increases and all other variables remains constant, ________. A) its income ... (Read 65 times)

Hungry! · **on:** Jun 30, 2018

If a country's GDP increases and all other variables remains constant, ________.

A) its income per worker will increase B) its income per capita will fall
C) its GNP will fall D) its trade surplus will increase

Question 2

Suppose that the marginal propensity to consume (MPC) is .75 and there is an increase in investment spending of 100,000. As a result, equilibrium real Gross Domestic Product (GDP) would increase by

A) 400,000. B) 75,000. C) 100,000. D) 750,000.