In the short run, a decrease in government purchases would
a. decrease real GDP because of the multiplier effect and price level changes, but be offset somewhat by decreases in the interest rate
b. decrease real GDP because of the increases in the price level and increases in the interest rate
c. decrease real GDP because of the multiplier effect and increase in the interest rate, but be offset somewhat by decreases in the price level
d. decrease real GDP because of the multiplier effect, but be offset somewhat by decreases in the price level and the interest rate
e. not change output because of the multiplier effect; price level and interest rate changes completely cancel each other out
D
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The above table has data from the nation of Atlantica. Based on these data, at what point does saving equal zero?
A) None, dissavings is present at all of the above points. B) Between disposable income of $0.0 and $1.8 trillion C) Between disposable income of $4.0 trillion and $5.8 trillion D) Between disposable income of $2.0 trillion and $3.2 trillion E) None, savings is present at all of the above points.
With an increase in the capital stock, the short-run aggregate supply curve
A) remains as it is. B) shifts rightward. C) shifts leftward. D) becomes steeper.
A linear total cost curve which passes through the origin implies that
a. average cost is constant and marginal cost is variable. b. average cost is variable and marginal cost is constant. c. average and marginal costs are constant and equal. d. need more information to answer question.
Which of the following can occur, when the government imposes a price control on a market?
(a) Excess supply of a good/service. (b) Excess demand for a good/service. (c) Price is not at its equilibrium level. (d) All of the above.