If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then _____ to reach the potential real GDP level. Group of answer choices total spending needs to increase by $0.1 billion nominal GDP needs to increase by $1.2 billion total spending needs to decrease by $6 billion nominal GDP needs to decrease by $12 billion total spending needs to increase by $0.4 billion

Question

Diamondmcelhane6676idn Diamondmcelhane6676idn

08-04-2021
Business

Answered

IDNLearn.com is your go-to resource for finding expert answers and community support. Get the information you need from our community of experts who provide accurate and thorough answers to all your questions.

If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then _____ to reach the potential real GDP level. Group of answer choices total spending needs to increase by $0.1 billion nominal GDP needs to increase by $1.2 billion total spending needs to decrease by $6 billion nominal GDP needs to decrease by $12 billion total spending needs to increase by $0.4 billion

Sagot :

Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Thank you for visiting IDNLearn.com. We’re here to provide accurate and reliable answers, so visit us again soon.

Choose All Options That Apply . Which Of The Following Are Steps Necessary To Ensure Patient Safety ? A) Make Sure That The Medication Is Dispensed In The Same

During A Forest Fire, A Population Of Rabbits Is Greatly Affected And Most Of The Population Dies. This Changes The Allelic Frequency Of The Population. What Is

Helppppppppppppppppppppp

What Is The Mass In G Of 5.20 Moles Of Silver?

5x + 6x + 20 = 180 What Is X?

In A Recent Year, 31% Of All College Students Were Enrolled Part-time. If 8.6 Million College Students Were Enrolled Part-time That year, What Was The Total Num

A Positively Charged Particle Is Moving Toward The South In A Region Of Space Where There Is A Magnetic Field Directed Down (toward The Ground). In Which Direct

Which Of The Following Had The Greatest Impact On The Institution Of Slavery In The United States In The First Quarter Of the Nineteenth Century?

A Snail Moves At A Speed Of 3.129 Inches Per Minute. If The Snail Keeps Moving At This Rate, About How Many Inches Will It Travel In 6.987 Minutes?

Which Inequality Represents This Sentence? A Number Is At Least 65 On < 65 On > 65 On > 65 On < 65

Abiolataiwo2015idn Abiolataiwo2015idn · Answer 1 · 2021-04-12T22:37:12-04:00

Answer:

total spending needs to increase by $0.4 billion

Explanation:

Calculation to determine how much total spending needs to increase or decrease

Using this formula

Increase or Decrease in total spending=Equilibrium income/Spending multiplier

Let plug in the formula

Increase or Decrease in total spending=$2 billion/5

Increase or Decrease in total spending=$0.4 billion

Therefore If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then TOTAL SPENDING NEEDS TO INCREASE BY $0.4 BILLION to reach the potential real GDP level.

Sagot :

Other Questions