Assume the slope of the AD curve is equal to 0.4 and government introduces a fiscal policy stimulus package of £42 billion. What is the effect on real GOP? Select one Oa Real GDP will decrease by E70 billion O Real GDP will increase by E105 billion OC Real GDP will remain the same Od. Real GoP will increase by E42 bilion O. Real GOP will increase by 70 biion
Assume the slope of the AD curve is equal to 0.4 and government introduces a fiscal policy stimulus package of £42 billion. What is the effect on real GOP? Select one Oa Real GDP will decrease by E70 billion O Real GDP will increase by E105 billion OC Real GDP will remain the same Od. Real GoP will increase by E42 bilion O. Real GOP will increase by 70 biion
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.4P
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