In the basic aggregate demand - aggregate supply model, an increase in government purchases will in the short run lead to ______ in real GDP and ______ in the price level.
Fill in the blank(s) with the appropriate word(s).
Answer: increase, increase
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In the above, which figure(s) show(s) relationship between the variables that is always positive?
A) Figure A only B) Figures C and D C) Figures A and C D) Figures A, C, and D E) Figures A and B
Fiscal policy is the manipulation of government spending and taxes
a. True b. False Indicate whether the statement is true or false
Bill's disposable income goes from $100,000 in 2010 to $200,000 in 2011, and his consumption spending goes from $80,000 in 2010 to $140,000 in 2011 . Which of the following statements about Bill is true? a. Bill's MPC rose between 2010 and 2011. b. Bill's MPC is equal to 0.7
c. Bill's MPC is equal to 0.6. d. Both (a) and (b) are true.
two goods that are used together. when the price of a complementary good rises, the demand for related good goes down
What will be an ideal response?