If government spending in a country declines by $10 billion and, at the same time, taxes increase by an equal amount, what is the total effect in the economy?

a. Equilibrium real GDP increases
b. Equilibrium real GDP increases by $20 billion
c. Equilibrium real GDP is unchanged
d. Equilibrium real GDP decreases by more than $10 billion and less than $20 billion
e. Equilibrium real GDP decreases by more than $20 billion


d

Economics

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Consider the two graphs above. Suppose rising fuel costs makes it more expensive to move goods to and from warehouses. This would ________ the desired level of inventories, as depicted in graph ________

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Economics

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Economics

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Economics