Asked by Yanan Zhang on Apr 28, 2024

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If MPC is .5 and government spending declines by $10 billion,then GDP will fall by ______.

Government Spending

Expenditures by government agencies on goods and services that are intended to improve the nation's economy and the welfare of its citizens.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific period of time.

  • Assess the outcomes of modifications in governmental spending and taxation through the use of fiscal multipliers.
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Lashekka GallegosMay 02, 2024
Final Answer :
$20 billion