D. this amount should be included in calculating that year's GDP
A. net exports.
B. government purchases.
C. investment.
D. consumption.
A. net exports.
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Explain why the expenditure multiplier is greater than 1
What will be an ideal response?
If supply is perfectly elastic, the supply curve is
a. vertical b. horizontal c. any straight-line supply curve d. any supply curve intersecting a perfectly elastic demand curve e. any supply curve intersecting a demand curve which is unit elastic
Something that would cause the long-run aggregate supply curve to shift to the right would be:
A. technological advance. B. discovery of a new oil reserve. C. increase in the growth rate of the labor force. D. All of these would shift the long-run aggregate supply curve to the right.
Starting at full employment (RGDPNR), a. expansionary monetary policy can potentially result in increased real output, but only in the short run
b. expansionary monetary policy can potentially result in increased real output in both the short run and long run. c. contractionary monetary policy can potentially result in increased real output, but only in the short run. d. contractionary monetary policy can potentially result in increased real output in both the short run and long run.