Investment Problem:

1.Assume the MPC is 3/4, if investment spending increase by $50 billion, the level of GDP will:

2.Assume the MPC is 2/3, if investment spending decreases by $30 billion, the level of GDP will:

Export Problem:

3.If the multiplier in an economy is 4, a $50 billion increase in exports will:

4.If the multiplier in an economy is 3,a $30 billion decrease in exports will:

Balanced Budget Problem:

5.If the MPC is .75 and government spending and taxes both increase by $5 billion then GDP will:

6.If the MPC is .60 and government spending and taxes both decrease by $5 billion then GDP will:

Target GDP Problems:

7.If the MPS is .25 and the current GDP is $180,000 and the target level of GDP is $160,000, what change in Government Spending is required to reach the target?

8.If the MPS is .67 and the current GDP is $150,000 and the target level of GDP is $210,000, what change in Government Spending is required to reach the target?

9.If the MPS is .20 and the current GDP is $150,000 and the target level of GDP is $175,000 what change in taxes would be required to reach the target?

10.If the MPS is .90 and the current GDP is $160,000 and the target level of GDP is $130,000 what change in taxes would be required to reach the target?