An increase in aggregate expenditure has what result on equilibrium GDP?
A) Equilibrium GDP falls.
B) Equilibrium GDP rises.
C) Equilibrium GDP is not affected by an increase in aggregate expenditure.
D) Equilibrium GDP may rise or fall depending on the size of the increase in aggregate expenditure relative to the initial level of GDP.
B
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If the quantity of money starts to grow more rapidly than real GDP and velocity does not change, the result is
A) slower growth in the price level. B) an increase in investment. C) more rapid growth in potential GDP. D) the inflation rate rises. E) an eventual slowing in the growth rate of the quantity of money.
The reason we study the non-strategic sequential labor negotiation game:
a. Is to show that these games usually go on for many rounds b. Is to show the importance of the first mover being able to commit to an offer c. Is to show the importance of the second mover being able to commit to an offer d. Is to show the irrelevance of mover position, given that he is able to commit to a position
Two workers are employed in the same job by the same firm; however, they are paid different wage rates. This could be explained by differences in
a. the income effect b. the price of the firm's output c. their marginal products due to differences in ability d. working conditions e. risk
Which of the following is a reason for the fast-food outlet McDonald's to be considered a monopolistic competitor?
A. McDonald's produces an identical product. B. McDonald's competes with almost a quarter million other fast-food outlets. C. McDonald's demand curve is a horizontal line. D. None of these statements support a monopolistic competitor.