An increase in government spending initially and primarily shifts
a. aggregate demand to the right.
b. aggregate demand to the left.
c. aggregate supply to the right.
d. neither aggregate demand nor aggregate supply in either direction.
a
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The production possibilities frontier can show a manufacturer’s possible combinations of output resulting from the combination of two goods.
Answer the following statement true (T) or false (F)
When the government sets a price floor which is below the equilibrium? price:
A. a price ceiling will follow.
B. a shortage will develop.
C. a surplus will develop.
D. the equilibrium price will be maintained.
Rates of substitution are determined by:
A. the consumer's income. B. the consumer's preferences. C. the number of available consumption bundles. D. the prices of different goods.
A French tourist spent $1,200 in the U.S this year. This transaction will lead to a(n)
A) increase in the GDP of France B) decrease in the GDP of France C) increase in the GDP of U.S. D) decrease in the GDP of U.S.