On a short-run macro model diagram, the impact of a decrease in government purchases (G) is illustrated by
a. a downward shift of the aggregate expenditure line by the full amount of the change in G
b. an upward shift of the aggregate expenditure line followed by an equal downward shift of that line
c. a leftward shift of the money supply curve
d. a downward shift of the aggregate expenditure line by an amount less than the change in G
e. the increase in real income
D
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When government spending exceeds tax revenues during a specific time period, this is known as a
A) government budget deficit. B) government budget surplus. C) balanced budget. D) public debt.
Assume that the opportunity cost for Germany to produce a jet is 50 cars. If Germany is producing on its production Possibility Frontier, some possible combinations of output for Germany could be:
A. (1,000 jets, 5,000 cars) and (900 jets, 10,000 cars). B. (1,000 jets, 5,000 cars) and (900 jets, 15,000 cars). C. (2,500 jets, 2,000 cars) and (2,300 jets, 20,000 cars). D. (2,500 jets, 2,000 cars) and (2,300 jets, 3,000 cars).
Tying involves a firm
a. colluding with another firm to restrict output and raise prices. b. selling two individual products together for a single price rather than selling each product individually at separate prices. c. temporarily cutting the price of its product to drive a competitor out of the market. d. requiring that the firm reselling its product do so at a specified price.
The way the government keeps price floors in effect is by _____.
Fill in the blank(s) with the appropriate word(s).