Assume the slope of the AD curve is equal to 0.4 and government introduces a fiscal policy stimulus package of £42 billion. What is the effect on real GOP?Select oneOa Real GDP will decrease by E70 bilion.O Real GDP will increase by E105 bilion,Oc Real GDP will remain the same.Od. Real GOP will increasse by 42 billion.O. Real GOP will increase by 70 billion

As per the information given in question, let the slope of AD curve be represented by S i.e. S=0.4.…

Assume the slope of the AD curve is equal to 0.4 and government introduces a fiscal policy stimulus package of £42 billion. What is the effect on real GOP? Select one Oa Real GDP will decrease by E70 billion O Real GDP will increase by E105 billion OC Real GDP will remain the same Od. Real GoP will increase by E42 bilion O. Real GOP will increase by 70 biion

Assume the slope of the AD curve is equal to 0.4 and government introduces a fiscal policy stimulus package of £42 billion. What is the effect on real GOP? Select one Oa Real GDP will decrease by E70 billion O Real GDP will increase by E105 billion OC Real GDP will remain the same Od. Real GoP will increase by E42 bilion O. Real GOP will increase by 70 biion

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 2TY

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