When the economy is in a recession, the government will want to increase output. if the multiplier equals 2.5 and the government increases spending by 200, how much will output increase by?
(a) 100
(b) 300
(c) 500
(d) 900

Janis owns and operates a store in a country experiencing a high rate of inflation. in order to prevent the value of money in her cash register from falling too quickly, janis sends an employee to the bank four times per day to make deposits in a interest-bearing account that protects the store's revenues from the effects of inflation. this is an example of the (menu costs/ unit of account costs/ shoesleather costs) of inflation. pick one