Refer to the diagram. The impact of the public sector on the equilibrium GDP:





A.  is expansionary.

B.  is contractionary.

C.  is neutral.

D.  cannot be determined from the information given.


A.  is expansionary.

Economics

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The motivation for collective action is to do things that benefit society as a whole

a. True b. False

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Changes in taxes or spending levels that stimulate aggregate demand without the passage of any new laws are called _____

a. expenditure multipliers b. discretionary monetary policies c. discretionary fiscal policies d. automatic stabilizers

Economics

Figure 5-13


According to Figure 5-13, if the price of good X falls, a consumer making her optimal decision will move from a point on

a.
U1 to a point on U3.

b.
U2 to a point on U3.

c.
U1 to a point on U3.

d.
U2 to a point on U1.

Economics

Shadow prices:

A. are paid in terms of opportunity costs. B. are set by the government. C. exist only in black markets. D. are illegal.

Economics