An increase in government expenditure on goods and services leads to the
A) aggregate supply curve shifting rightward.
B) aggregate supply curve shifting leftward.
C) aggregate demand curve shifting rightward.
D) aggregate demand curve shifting leftward.
E) potential GDP increasing.
C
You might also like to view...
The only goods you consume are pizza and soda. Both are normal goods. You consider pizza and soda to be substitutes. Which of the following will lead you to eat more pizza?
A) The price of a pizza falls. B) The price of a soda falls. C) The price of a soda rises. D) Both answers A and C are correct.
The observed variations in practice patterns in different regions of the country are difficult to eliminate
a. because of the many alternative treatment options available for most ailments. b. due to the localized nature of most medical practice. c. because it is difficult to change the preferences of physicians and patients. d. the observed variations are so minor that they are of little concern to policy makers. e. responses a, b, and c are all true.
Suppose a tax cut affected aggregate demand and aggregate supply. The shift in aggregate supply would make the
a. price level and real GDP change by more than otherwise. b. price level change by more than otherwise and real GDP change by less than otherwise. c. price level change by less than otherwise and real GDP change by more than otherwise. d. price level and real GDP change by more than otherwise.
If the price of chicken rises and the price of beef does not rise, consumers will respond by:
A. increasing purchases of beef and chicken. B. reducing purchases of beef and chicken. C. substituting chicken for beef. D. substituting beef for chicken.