The AD curve shifts to the left with a __________ in government purchases (G) or a __________ in taxes
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
C
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Gross investment is
A) the wear and tear on private investment. B) the total amount of new private investment purchases. C) what is left over from total new private investment after depreciation. D) the total amount of private investment purchases, whether new or previously existing.
What are in-kind transfers, and why are they more target-efficient than cash transfers?
What will be an ideal response?
An example of a government policy to increase physical capital formation is:
A. the construction of an interstate highway system. B. maintaining a well-functioning legal system. C. government support for basic research. D. the provision of publicly-funded education.
If the price level in an economy increases, other things constant, consumption spending is likely to _____
Fill in the blank(s) with the appropriate word(s).