Using Keynesian multiplier, MPC= 0.8 and government spending increased – McqOptions

MCQOPTIONS

1.	Using Keynesian multiplier, MPC= 0.8 and government spending increased by 40 billiondollars. How much will GDP increased?
A.	100 billion dollars
B.	200 billion dollars
C.	300 billion dollars
D.	500 billion dollars
Answer» C. 300 billion dollars

Discussion

No Comment Found

Related MCQs

When there are vacancies in the job-market, but also high levels of unemployment, then wecould say that this unemployment is?
Suppose that the money stock is $10 billion, each dollar generates $ 5worth of spending, andthe NAIRU is 7%. According to the quantity theory of what is nominal GDP (income)
The economist who proposed that,” inflation is always and every where monetaryphenomenon”was
According to monetary approach a revaluation of a nation’s currency
Which of the following is true with respect to the monetary approach to the balance ofpayments?
Attempts to force inflation below no-accelerating inflation rate of unemployment (NAIRU)will cause:
If the aggregate supply curve is perfectly elastic as in the Keynesian model at low level ofnational incomes, as increase in AD will cause an increase in
In the very short term, in the Keynesian model which of the following is fixed and does notchange when GDP changes
Using Keynesian multiplier, MPC= 0.8 and government spending increased by 40 billiondollars. How much will GDP increased?
“In a closed economy with no government; s=100+0.2y investment increases by 100, what isthe increase in consumption?