Suppose the government increases government spending and increases taxes by the same amount to pay for it. We would predict ________.
A. real GDP will increase
B. the effect on real GDP depends on the size of the MPC
C. real GDP will fall
D. real GDP will not change
Answer: A
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The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:
A. $9,000. B. $100,000. C. $21,000. D. $30,000.
Elasticity of demand equals the ratio of the percentage change in the quantity demanded to the percentage change in the price of the good.
Answer the following statement true (T) or false (F)
If the price of monthly satellite TV service increases from $40 to $50, the percentage change is:
A. 5 percent. B. 20 percent. C. 25 percent. D. 45 percent.
The phrase "owners' equivalent rent of primary residence" means the cost of housing services for one year.
Answer the following statement true (T) or false (F)