If the Keynesian goods market multiplier is 2 and investment declines by €100 billion, then equilibrium GDP will Increase by €50 billion. Increase by €200 billion Reduce by €200 billion. Reduce by €50 billion.

If the Keynesian goods market multiplier is 2 and investment declines by €100 billion, then equilibrium GDP will Increase by €50 billion. Increase by €200 billion Reduce by €200 billion. Reduce by €50 billion.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 17SQ

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Question

Question 13

If the Keynesian goods market multiplier is 2 and investment declines by €100 billion,
then equilibrium GDP will
Increase by €50 billion.
Increase by €200 billion
Reduce by €200 billion.
Reduce by €50 billion.

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