Refer to Figure 13-3. Suppose the economy is at point A. If government spending increases in the economy, where will the eventual long-run equilibrium be?
A) A
B) B
C) C
D) D
C
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If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be to
A. increase real GDP by $50 billion. B. increase real GDP by more than $50 billion. C. make no change in real GDP. D. increase real GDP by less than $50 billion.
In terms of location decisions, firms evaluate the extent to which the labor force is unionized
Indicate whether the statement is true or false
The law of demand implies that the demand curve is Question 20 options:
A. downward sloping. B. upward sloping. C. downward sloping at high prices and upward sloping at low prices. D. upward sloping at high prices and downward sloping at low prices.
When market failures occur
A. the invisible hand will correct for the market failures. B. buyers and sellers will correct the market failures. C. the price system will correct the market failures. D. the government can step in to correct the market failures.