Remitopia's GDP falls short by $450 billion. How much can they change in Government spending to reach their goal? Their current MPC is 90%.
AP Macro Unit 3

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Social Studies
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12th Grade
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Hard
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1.
FLASHCARD QUESTION
Front
Back
$45 billion
2.
FLASHCARD QUESTION
Front
Remitopia's GDP falls short by $450 billion. How much can they change in taxes to reach their goal? Their current MPS is 10%.
Back
$50 billion
3.
FLASHCARD QUESTION
Front
MPS is 20%. What is the Expenditure (Spending) Multiplier?
Back
5
4.
FLASHCARD QUESTION
Front
MPS is 20%. What is the Tax Multiplier?
Back
4
5.
FLASHCARD QUESTION
Front
MPS is 20%. Government spends $1 million. How does this affect AD?
Back
Increase by $5 million
6.
FLASHCARD QUESTION
Front
MPS is 20%. Taxes are cut by $1 million. How does this affect AD?
Back
Increase by $4 million
7.
FLASHCARD QUESTION
Front
MPS is 20%. The government wants to reach a GDP goal of $100 million. What's the change in spending?
Back
$20 million
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