Question
potential GDP of an economy is $12billion. Real (actual) GDP is $20 billion. Marginal propensity to consume is 0.75. what level of Government spending is
potential GDP of an economy is $12billion. Real (actual) GDP is $20 billion. Marginal propensity to consume is 0.75. what level of Government spending is required to achieve full employment?
- Decrease in government spending by $1 billion.\
- Decrease in government spending by $2 billion.
- Increase in government spending by $2 billion.
- Increase in government spending by $1 billion.
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Business Law Principles For Today's Commercial Environment
Authors: David P Twomey, Marianne M Jennings
2nd Edition
0324303947, 9780324303940
