If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result,we can conclude that:
A)the spending multiplier is 2.00
B)the MPC for this economy is 0.33
C)unemployment is rising
D)the MPW for this economy is 0.33
E)the spending multiplier is 3.00

Question

Quizplus · Accepted Answer

The Answer of If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result,we can conclude that:
A)the spending multiplier is 2.00
B)the MPC for this economy is 0.33
C)unemployment is rising
D)the MPW for this economy is 0.33
E)the spending multiplier is 3.00

If Government Purchases Increase by $20 Billion and Aggregate Demand