Decreases in consumption, investment, or net exports caused by an increase in government purchases are known as
A) strategic substitution. B) crowding out.
C) diminishing returns. D) demand-side effects.
B
You might also like to view...
The statement that there is a direct relation between x and y means that
a. x and y move in the same direction b. x causes y c. y causes x d. either y causes x or x causes y e. the causal connection between x and y is immediate
In 2001 the United States and its NATO allies dropped millions of dollars' worth of bombs on Afghanistan. These bombs and the aircraft from which they were dropped
a. were netted out of GDP. b. increased GDP and increased personal welfare. c. decreased GDP and decreased personal welfare. d. were added to GDP.
Which of the following statements about costs is correct?
a. When marginal cost is less than average total cost, average total cost is rising. b. The total cost curve is U-shaped. c. As the quantity of output increases, marginal cost eventually rises. d. All of the above are correct.
Refer to the above table. What is the GDP price index in Year 1?
105.2 111.5 108.3 109.6