In the IS-LM model when government spending rises, in short-run equilibrium, in the usual case, the interest rate ______ and output ______.
Fill in the blank(s) with the appropriate word(s).
rises; rises
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Suppose the United States discovers a way to produce clean nuclear fuel. The effect of this discovery would be to
A) lead the United States to produce less nuclear fuel. B) force the United States to produce at a point inside its PPF. C) shift the U.S. PPF outward. D) shift the U.S. PPF inward.
One of the limitations of aggregate accounting is that:
A. it doesn't take depreciation into account. B. it measures market activity, not social welfare. C. it includes market transactions that should be excluded. D. there isn't enough data available in most developed countries to have national income accounts.
The federal personal income tax is
A. a direct tax. B. an indirect tax. C. both a direct tax and an indirect tax. D. neither a direct tax nor an indirect tax.
Producer surplus is the ________ summed over the quantity produced
A) price of the good minus the marginal cost of producing it B) marginal benefit of the good minus its marginal cost C) marginal benefit of the good minus its price D) marginal cost of the good minus the opportunity cost of producing it E) None of the above answers is correct.