Business, 16.04.2021 19:20, shanice13

If government expenditure rises by $27.5 billion and the multiplier in the economy is 2.5, then: a. real GDP falls by $55 billion, and the IS curve shifts to the left.
b. real GDP rises by $27.5 billion, and the IS curve shifts to the right.
c. real GDP rises by $68.75 billion, and the IS curve shifts to the right.
d. real GDP falls by $11 billion, but the IS curve does not shift.

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If government expenditure rises by $27.5 billion and the multiplier in the economy is 2.5, then: a...