Refer to Figure 16-12. An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2
Assuming a constant price level, the difference in real GDP between point A and point B will be ________ $200 billion.
A) less than
B) greater than
C) equal to
D) There is insufficient information given here to draw a conclusion.
B
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An increase in checking account balances equals the initial deposit multiplied by total reserves
Indicate whether the statement is true or false
Households in the former Yugoslavia were required to declare the number of radios and television sets they owned, and to pay a monthly tax on each. From the perspective of the free-rider problem, the radio and TV taxes attempted to
A) generate negative externalities on Yugoslav households. B) generate positive externalities on Yugoslav households. C) coerce households into paying for the radio and television broadcasts. D) coerce households into listening less to radio and watching less television.
Demand for science fiction novels is elastic and supply of science fiction novels is inelastic. When the government puts a $2.00 tax on science fiction novels,
a. buyers will pay most of the tax. b. sellers will pay most of the tax. c. buyers and sellers will split the tax evenly. d. elasticity has nothing to do with who pays the tax.
Refer to the graph shown. If the firm is producing 525 units of output, profit is equal to:
A. $0. B. $30. C. $38. D. ?$38.