When the crowding-out effect of an increase in government purchases is included in the analysis:
a. AD shifts left, but by more than the simple multiplier analysis would imply.
b. AD shifts left, but by less than the simple multiplier analysis would imply.
c. AD shifts right, but by more than the simple multiplier analysis would imply.
d. AD shifts right, but by less than the simple multiplier analysis would imply.
d
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How would you interpret (1) an upward sloping curve and (2) a zero slope curve in a two variable diagram?
The perfect competitor's demand curve is
A. perfectly elastic. B. perfectly inelastic. C. highly elastic. D. highly inelastic.
Individuals receive income and pay taxes over the course of a year. The difference between the income they receive and the taxes they pay is referred to as
A. net national income. B. per capita real GDP. C. net domestic product. D. disposable personal income.
Distinguish between a balance-of-payments surplus and a balance-of-payments deficit in terms of payments of official reserves.
What will be an ideal response?