In the aggregate expenditures model, an increase in government spending causes a(n):
a. upward shift in the aggregate expenditures curve.
b. downward shift in the aggregate expenditures curve.
c. shift in the 45-degree line.
d. rightward movement along the aggregate expenditures curve.
e. leftward movement along the aggregate expenditures curve.
a
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For the best indication of the material standard of living of the typical person in society, focus should be placed on
A) real GDP. B) nominal GDP. C) real GDP per capita. D) nominal GDP per capita.
In the figure above, if the minimum wage is $2 per hour, then
A) the quantity of labor supplied is 4 million hours and the quantity of labor demanded is 2 million hours. B) the quantity of labor demanded is 4 million hours and the quantity of labor supplied is 2 million hours. C) unemployment is 1 million hours. D) the quantity of labor supplied is 3 million hours and the quantity of labor demanded is 3 million hours.
When the aggregate demand curve shifts to the left, real GDP falls unless the aggregate supply curve is
A) horizontal. B) upward-sloping. C) vertical. D) upward-sloping or vertical.
Figure 17-13
In , if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the United States' net loss as a result of the tariff?
a.
a + b + c + e
b.
b + c + e
c.
b + c
d.
c + e
e.
b + f