An economic system characterized by private ownership of the factors of production and economic activity coordinated through a system of markets and prices is called:
a. capitalism. b. socialism.
c. communism. d. none of these.
Question 2
If the spending multiplier is equal to 4, then a 25 initial increase in investment spending will lead to a:
a. 25 increase in real GDP.
b. 1 decrease in real GDP.
c. 1 increase in real GDP.
d. 100 decrease in real GDP.
e. 100 increase in real GDP.
