According to the traditional Keynesian approach, if the government increases spending by $5 million and raises current taxes by $5 million at the same time, then

A) real GDP will increase by $5 million.
B) real GDP will decrease by $5 million.
C) real GDP will decrease by more than $5 million.
D) real GDP will remain the same.


A

Economics

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An example of price discrimination is the price charged for:

a. a postage stamp. b. theater tickets that offer lower prices for children. c. an economics textbook at a campus bookstore. d. Any of these.

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If real GDP doubles and the GDP deflator doubles, then nominal GDP

a. remains constant. b. doubles. c. triples. d. quadruples.

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When estimating a short-run average variable cost function,

A. the intercept must be forced to equal zero. B. the cost data must be inflation-adjusted. C. at least one input must have been constant during the period in which the data were collected. D. both b and c E. all of the above

Economics