With a rise in government expenditure we
A) move up along an aggregate demand curve.
B) move down along an aggregate demand curve.
C) shift the aggregate demand curve to the right.
D) shift the aggregate demand curve to the left.
C
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If the money multiplier is 10, the purchase of $1 billion of securities by the Fed on the open market causes a
A) $10 billion decrease in the money supply. B) $1 billion decrease in the money supply. C) $1 billion increase in the money supply. D) $10 billion increase in the money supply.
A monopolistic industry will have a Herfindahl index value of:
a. 1. b. 100. c. 500. d. 1000. e. 10.
Which of the following is an example of detrimental externality?
A. A trailer’s entry onto an overcrowded road that delays the movement of other vehicles. B. Fall in demand for gasoline in the United States softens the price of gasoline in the global market. C. Government investment in energy generation from nonconventional sources. D. Society devotes huge quantity of its scarce resources for vital innovative activity.
The nation, as a whole, is hurt by inflation if it:
a. Is expected. b. Reduces productivity. c. Changes consumers' preferences for durable versus non-durable goods. d. Rises at a rate that is greater than real GDP. e. All the above are true.