Author Question: Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at 2,000 ... (Read 71 times)

LCritchfi · **on:** Jun 30, 2018

Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at 2,000 billion, then which one of the following actions will bring it to a full employment equilibrium of 1,500 billion?
a. 500 billion spending cut.
b. 500 billion spending increase.
c. 125 billion spending cut.
d. 125 billion spending increase.
e. 2,000 billion spending cut.

Question 2

The central bank of the United States is the:
a. Federal Reserve Banking System.
b. First National Bank.
c. Comptroller's Bank.
d. United States National Bank.
e. U.S. Treasury Bank.