If the multiplier in an economy is 3, a $40 billion increase in net exports will Multiple Cholce Increase GDP by $120 billion. reduce GDP by $12 billion. decrease GDP by $120 billion. Increase GDP by $40 billion.

If the multiplier in an economy is 3, a $40 billion increase in net exports will Multiple Cholce Increase GDP by $120 billion. reduce GDP by $12 billion. decrease GDP by $120 billion. Increase GDP by $40 billion.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.A: Graphical Treatment Of Taxes And Fiscal Policy

Problem 2TY

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

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If the multiplier in an economy is 3, a $40 billion increase in net exports will
Multiple Cholce
Increase GDP by $120 billion.
reduce GDP by $12 billion.
decrease GDP by $120 billion.
Increase GDP by $40 billion.

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