Question

Please see picture -
I understand everything here until the last step.

Why is 1 billion made negative and 900 million made positive? Wouldn't it be 100 million increase in GDP?

Answer 1

I don't understand the highlighted step, would someone please explain why?

Answer 2

@_@ oh my

Answer 3

im too dumb to know that @_@

Answer 4

ooh ooh i think i can help with this one i may be wrong but at least i tried unlike @gamesarefun. So it would be $100 million decrease because you are taking a positive by a negative and that makes a positive (i think im not sure) but if you dont understand the decrease part then you can just look that up on socratic or google

Answer 5

hope this helps

Answer 6

sorry gamesarefun didnt mean to offend you

Answer 7

@gamesarefun get on my question please i need help

Answer 8

Thank you @RyeBread1 for taking the time to answer.

I'll try to think if it has to do with the math aspect, but I doubt it. I think it has something to do with the conceptual side of tax/spending multipliers and their impact on GDP.

Answer 9

Yeah, I'm confuzzled as well, even though I took AP Macro. I'm assuming this is the answer key?

Answer 10

Yeah this was a sample

I think I understand it now; the decrease in tax would increase the GDP, so they made that portion positive, and the decrease in spending would decrease the GDP, so they made that negative