Which statement accurately compares government purchases and net exports in terms of their impacts on aggregate demand?
a. The impact of government purchases is much larger than the impact of net exports.
b. The impact of government purchases is similar to the impact of net exports.
c. Neither government purchases nor net exports have an impact.
d. The impact of government purchases is much smaller than the impact of net exports.
b. The impact of government purchases is similar to the impact of net exports.
You might also like to view...
Which of the following provides a positive externality?
a. smog b. inoculating children against measles c. hamburgers d. litter e. an increase in your earnings
Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies. Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies. Who, if either, has an absolute advantage baking bread? Who, if either, has an absolute advantage making cookies?
A true cost-of-living adjustment (COLA) in response to a change in prices would compensate consumers so that they would be able to
A) purchase the same bundle they purchased before prices changed. B) achieve the same level of utility they did before prices changed. C) face the same choices they did before prices changed. D) achieve an increase in utility that is equal to the rate of inflation.
If there is unplanned inventory decumulation there is excess
A) demand for bonds. B) supply of bonds. C) demand for commodities. D) supply of commodities.