The economy is in a recession. The government enacts a policy to increase spending by $2 billion. The MPS is 0.2. What would be the full increase in real GDP from the change in government spending, assuming that the aggregate supply curve is horizontal across the range of GDP being considered? A. $6 billion
B. $8 billion
C. $10 billion
D. $16 billion
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The economy is in a recession. The government enacts a policy to increase spending by $2 billion. The MPS is 0.2. What would be the full ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Preparing a Direct Labor Budget Tulum Inc. makes a Mexican chocolate mix. Planned production in units for the first 3 months of the coming year is: January 24,700 February 22,000 March 30,200 Each box of chocolate mix takes 0.4 direct labor hour.
Answers (2)
Based on trends displayed in the graphs above, which answer choice represents a likely situation for 2010? a. There will be more than 6.5 million construction employees in 2010, and those employees will have average hourly earnings of $24.00. b.
Answers (1)
A production department's output for the most recent month consisted of 9,400 units completed and transferred to the next stage of production and 6,400 units in ending Work in Process inventory.
Answers (2)
Webb Co. acquired 100% of Rand Inc. on January 5, 2018. During 2018, Webb sold goods to Rand for $2,400,000 that cost Webb $1,800,000. Rand still owned 40% of the goods at the end of the year.
Answers (1)
Who is responsible for payment of self-employment tax on fees received by a professional fiduciary?
Answers (1)
New Questions in Business
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour.
Answers (1)
Suppose that the government sets a price floor for milk that is above the competitive equilibrium price With the price floor, consumers are willing to purchase the quantity indicated where the price floor intersects the With the price floor, the
Answers (1)
Choose the best revision of the previous sentence. Because many executives have access to company jets boards of directors have a responsibility to ensure that shareholders are not footing the bill for personal travel.
Answers (1)
Who puts the federal budget together?
Answers (1)
Board Games, Inc. makes board games. The following data pertains to the last six months:Direct Labor HoursManufacturing OverheadMonth 1 45,000 $295,000Month 2 60,000 $320,000Month 3 57,000 $323,000Month 4 52,000 $247,250Month 5 34,000 $178,200Month
Answers (1)