According to the graph shown, if the government decides to increase its spending, it is most likely at point:
A. C
B. B
C. D
D. It's impossible to tell without more information.
B. B
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The function of money that allows individuals a method to compare the relative value of goods and services is
A) liquidity. B) medium of exchange. C) store of value. D) unit of accounting.
According to Keynesian theory, the profit-maximizing firm demands labor up to the point at which
a. the real wage is equal to the marginal productivity of labor. b. the money wage paid to labor is just equal to the money value of the marginal product of labor. c. labor and capital costs are equal. d. a and/or b are correct.
If a decrease in prices increases total revenue for a product in the short run, in the long run, it will: a. Increase total revenue by more
b. Increase total revenue by less. c. Decrease total revenue. d. Either b. or c. could result in the long run.
If deflation is 0.5 percent per year and you receive a 1 percent decrease in your salary, then your
A. Real income falls, but your nominal income remains unchanged. B. Real and nominal income both rise. C. Real and nominal income both fall. D. Real income remains unchanged, but your nominal income rises.