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.
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The motivation for collective action is to do things that benefit society as a whole
a. True b. False
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
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.
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.