If government spending were to increase we expect that the aggregate demand curve will:
A. shift straight down.
B. shift to the right.
C. remain unchanged but the economy will move down along the curve to a higher quantity.
D. remain unchanged but the economy will move down along the curve to a lower quantity.
B. shift to the right.
You might also like to view...
If you were president of the United States, what would you do to reduce the natural rate of unemployment? Propose at least three different methods
What will be an ideal response?
Refer to Scenario 16.3. What is Sam's marginal rate of substitution of tee shirts for candy at the current distribution?
A) 2. B) 7/5. C) 5/7. D) It is impossible to determine without the prices of each commodity.
A firm should continue to hire a resource as long as the resource's marginal revenue product exceed the resource's marginal resource cost
a. True b. False
A company's credit risk can be high even if it is solvent and well-capitalized, if there is:
a. Actually, it is impossible for a solvent, well-capitalized company to have a high credit risk. b. Insufficient cash earnings and/or insufficient access to the credit markets. c. High expected inflation. d. Political and central bank instability in the nation(s) where it operates. e. A high real, risk-free interest rate.