Which of the following is a characteristic of capitalism?
a. Government ownership of all capital.
b. Government decision-making is preferred to decentralized decision-making.
c. Market determination of prices and quantity.
d. Equality of income.
Question 2
If the multiplier is 3, equilibrium real GDP is 1,000 billion, and investment is 400 billion, what will happen if investment decreases to 380 billion? Real GDP will:
a. increase to 1,020 billion.
b. increase to 1,060 billion.
c. decrease to 980 billion.
d. decrease to 940 billion.
e. decrease to 970 billion.
Romanesque capital showing Samson and the lion (13th century).
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