Using the AD-AS model, an increase in government expenditure...
a) has no impact on real GDP
b) has no impact on real GDP, but will increase potential GDP
c) increases both real and the price level
d) has a full multiplier effect on real GDP, leaving the price level unchanged in the long run
c) increases both real and the price level
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A positive externality is created if:
A. an action harms someone not involved in the market transaction. B. an action benefits someone not involved in the market transaction. C. neither helps nor hurts someone not involved in the market transaction. D. an action harms or benefits someone not involved in the market transaction.
If an LDCs population growth rate is 3 percent per year, how much must the economic growth rate be just to maintain per capita income?
a. 0 percent b. 3 percent c. 1 percent d. 6 percent e. 2 percent
Economists refer to historical costs (irreversible costs already incurred) as
a. implicit costs. b. sunk costs. c. opportunity costs. d. variable costs.
Between 2002 and 2014, employment a. declined in construction and manufacturing
b. declined in construction and increased in manufacturing. c. delclined in manufacturing and increased in construction. d. increased in construction and manufacturing.