Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$3500.75$400$400$200Determine the change in the equilibrium real GDP (find ?Y) following a decrease in government spending from 400 to 300 (?G = -$100).
A. positive $500
B. negative $400
C. positive $400
D. negative $500
Answer: B
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Trade without serious income distribution effects is most likely to happen
A) in sophisticated manufactures trade between rich countries. B) in simple manufactures trade between developing countries. C) in sophisticated manufactures trade between rich and poor countries. D) in agricultural trade between rich countries. E) in labor-intensive industries like clothing.
The three possible sources of government funding include
A) explicit fees, taxes, and borrowing. B) international income, personal income taxes, and export taxes. C) foreign aid, revenues, and implicit fees. D) None of the above are correct.
Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets b. loggers clear-cut a tract of land rather than when paying per tree felled c. Drivers of heavier, safer cares are less likely to run stop signs d. workers on commission work harder than those paid an hourly wage
In the early 1980s many farmers, caught between falling farm prices and rising costs, went bankrupt and defaulted on their bank loans
Indicate whether the statement is true or false