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Tidy Tidy
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8 years ago
Suppose the government spending multiplier is 2. The federal government cuts spending by $40 billion. What is the change in GDP if the price level is not held constant?
A) an increase of less than $80 billion
B) an increase equal to $80 billion
C) an increase of greater than $80 billion
D) a decrease of less than $80 billion
E) a decrease of more than $80 billion
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
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SydnieSydnie
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