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11 Dec 2019
If government expenditure on goods and services increase by $10 billion, then aggregate demand:
(i) increases by $10 billion multiplied by the tax multiplier.
(ii) increases by $10 billion.
(iii) increases by $10 billion multiplied by the government expenditure multiplier.
(iv) decreases by $10 billion.
(v) decreases by $10 billion multiplied by the government expenditure multiplier.
If government expenditure on goods and services increase by $10 billion, then aggregate demand:
(i) increases by $10 billion multiplied by the tax multiplier.
(ii) increases by $10 billion.
(iii) increases by $10 billion multiplied by the government expenditure multiplier.
(iv) decreases by $10 billion.
(v) decreases by $10 billion multiplied by the government expenditure multiplier.
Trinidad TremblayLv2
22 Jan 2020
