An increase in government spending will cause a(n):
a. Increase in aggregate demand
b. Decrease in aggregate demand
c. Increase in aggregate supply
d. Decrease in aggregate supply
a. Increase in aggregate demand
You might also like to view...
Refer to Scenario 12.2. In this game, if the players successfully coordinate and Eliza ends up playing her weak strategy, then
A) Eliza will donate a kidney and Jerome will not donate. B) both Eliza and Jerome will donate a kidney. C) Jerome will donate a kidney and Eliza will not donate. D) neither Eliza nor Jerome will donate a kidney.
The marginal benefit of acquiring additional information tends to
a. be zero if the marginal cost of information is zero b. increase and then decrease as additional information is obtained c. be smaller, the smaller the quantity of information the individual already has obtained d. increase as additional information is obtained e. decrease as additional information is obtained
If expected inflation is constant, then when the nominal interest rate falls, the real interest rate
a. falls by more than the change in the nominal interest rate. b. falls by the change in the nominal interest rate. c. rises by the change in the nominal interest rate. d. rises by more than the change in the nominal interest rate.
Based on the theory of purchasing power parity, in the long run, currencies of countries with significant inflation will tend to:
A. be flexible. B. depreciate. C. appreciate. D. have nominal exchange rates.