Assuming the price level has not changed, how would an increase in the aggregate demand affect real GDP?
A. It decreases.
B. It increases.
C. It only changes with changes in imports.
D. It only changes with changes in exports.
Answer: B
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Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen
A) increase; depreciates B) decrease; depreciates C) decrease; appreciates D) increase; appreciates
The marginal product of labor
A) is measured by the slope of the production function relating capital to employment. B) is larger when the labor supply is relatively larger. C) is smaller when the labor supply is relatively smaller. D) decreases as the number of workers already employed increases.
Gross fiscal expenditure in a country increased by $100,000 during a certain year. If the marginal propensity to save is 0.5, then real GDP in this country has increased by: a. $125,000. b. $50,000
c. $200,000. d. $100,000.
The? special-interest theory of government suggests a government will approve an inefficient project if the costs of the project are paid by a large number of citizens and the benefits go to a small number of citizens.
The? special-interest theory of government suggests a government will approve an inefficient project if the costs of the project are paid by a
number of citizens and the benefits go to a
number of citizens.