AP Macro Unit 3

Front

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%.

Back

$45 billion

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

Front

MPS is 20%. What is the Expenditure (Spending) Multiplier?

Back

5

Front

MPS is 20%. What is the Tax Multiplier?

Back

4

Front

MPS is 20%. Government spends $1 million. How does this affect AD?

Back

Increase by $5 million

Front

MPS is 20%. Taxes are cut by $1 million. How does this affect AD?

Back

Increase by $4 million

Front

MPS is 20%. The government wants to reach a GDP goal of $100 million. What's the change in spending?

Back

$20 million

Front

MPS is 20%. The government wants to reach a GDP goal of $100 million. What's the change in taxes?

Back

$25 million

Front

MPS is 10%. What is the Expenditure (Spending) Multiplier?

Back

10

Front

MPS is 10%. What is the Tax Multiplier?

Back

9