If an economy consumes 75 percent of any increase in real GDP and ...

[newbem]

If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this increased income on imports, then a decline in government spending by 60 million will result in a total reduction in equilibrium income of:
 a. 171.43 million.
  b. 123.47 million.
  c. 151.63 million.
  d. 73.47 million.
  e. 71.43 million.

Question 2

A downward-sloping demand curve illustrates
 a. that demand increases.
 b. that prices fall.
 c. the relationship between income and demand.
  d. the law of demand.

[shaquita]

Answer to Question 1

a

Answer to Question 2

d

[newbem]

TYSM

[Jossy]

Gracias!