A temporary increase in government spending that leads to only a small decline in lifetime wealth likely shifts the output demand curve to the
A) right by more than the rightward shift in output supply.
B) right by less than the rightward shift in output supply.
C) left by more than the leftward shift in output supply.
D) left by less than the leftward shift in output supply.
A
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Which of the following statements is TRUE?
A) No economic model captures every detail that affects a problem. B) Economic models always make accurate predictions about behaviors. C) Economic models must fully reflect reality. D) Economic models use economists' opinions with no use of data.
Government subsidized scholarships are an example of a government policy aimed at correcting negative externalities associated with education
a. True b. False Indicate whether the statement is true or false
If aggregate demand and aggregate supply both shift right, we can be sure that the price level is higher in the short run
a. True b. False Indicate whether the statement is true or false
Firms that help corporations and governments raise money by selling stocks and bonds are known as:
A. investment banks B. thrifts C. mutual fund companies D. insurance companies