Author Question: The equilibrium level of real GDP is 1,000 . the target full-employment level of real GDP is 1,500, ... (Read 88 times)

folubunmi · **on:** Jun 30, 2018

The equilibrium level of real GDP is 1,000 . the target full-employment level of real GDP is 1,500, and the marginal propensity to consume is 0.75 . The target can be reached if government spending is:
a. increased by 100 billion.
b. increased by 125 billion.
c. increased by 500 billion.
d. held constant.

Question 2

Money is said to be liquid because it is immediately available to spend for goods.
a. True
b. False
Indicate whether the statement is true or false