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the country of Solow, people spend 9 0 % of every dollar they get, and 1 5 % of every dollar on imports. The government
the country of Solow, people spend of every dollar they get, and of every dollar on imports. The government spends $ million building a bridge, and real GDP increases by $ million. Before the spending happened, were there many unemployed workers who wanted to work and had the right skills? Hint: think about what the simple multiplier is points a Yes, there were a lot of unemployed workers willing to work b No there were only a few unemployed workers. The economy was at potential or above c No there were no unemployed workers at all. The economy was producing as much as possible d All of these are true e It is not possible to know this from the information here
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