Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. As a result of an increase in government spending, the equilibrium interest rate ________ and the equilibrium output level ________.
A. increases; increases
B. increases; decreases
C. decreases; decreases
D. decreases; increases
Answer: A
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Refer to Table 7-5. Fill in the following table with the opportunity costs of producing bows and arrows for Tran and Farah
Pens Pencils Tran Farah
Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP. Do you agree or disagree? Why?
What will be an ideal response?
Refer to Figure 3-5. At a price of $5
A) there is a shortage of 4 units. B) there is a shortage of 6 units. C) there is a scarcity of 4 units. D) there is a surplus of 4 units.
The demand curve in the perfectly competitive industry
A. is identical to the firm’s demand curve. B. negatively sloped. C. positively sloped. D. perfectly elastic.