When the economy is in a recession, the government will want to increase output. If the multiplier equals 2.5 and the government increases spending by 200, how much will output increase by?
A. 100
B. 300
C. 500
D. 900
Answer:C
When the economy is in a recession, the government will want to increase output. If the multiplier equals 2.5 and the government increases spending by 200, how much will output increase by?
A. 100 B. 300 C. 500 D. 900
Explanation: Type: Multiple Choice