Answered: vIf this economy was an open economy…

vIf this economy was an open economy with a government sector, the level of GDP would be The size of the multiplier associated with changes in government spending in this economy is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Quèstion 18
Refer to the diagram below and match the corect answer
140
C+6
120
100
80
45
100
200
300
400
GDP ($B)
v If this economy was an open economy with a government sector, the level of GDP would be
A $400.
The size of the multiplier associated with changes in government spending in this economy is
B. 5.00.
C. 2.00.
D. $300.
E $200.
F. 3.50.

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