Using the aggregate demand- aggregate supply model, an increase in government spending...
What will be an ideal response?
increases both real GDP and the price level
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Which types of expenditures (From the GDP formula) are entirely autonomous, according to Keynes?
Policymakers use taxes
a. to raise revenue for public purposes but not to influence market outcomes. b. both to raise revenue for public purposes and to influence market outcomes. c. when they realize that price controls alone are insufficient to correct market inequities. d. only in those markets in which the burden of the tax falls clearly on the sellers.
Which of the following statements about the financial and real sectors is true?
A. For every real asset there is a financial asset. B. For every financial asset there is a real asset. C. For every real transaction there is a financial transaction. D. For every financial transaction there is a real transaction.
The original source of capital is __________.
Fill in the blank(s) with the appropriate word(s).