A $2,000 decrease in investment will shift the aggregate expenditures curve down by:
a. exactly $2,000 and will decrease the equilibrium level of real GDP by exactly $2,000.
b. exactly $2,000 and will decrease the equilibrium level of real GDP by less than $2,000.
c. exactly $2,000 and will decrease the equilibrium level of real GDP by more than $2,000.
d. less than $2,000 and will decrease the equilibrium level of real GDP by less than $2,000.
c
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In the Spence education signaling model, what is the social value of education?
a. Employees improve their ability to perform on the job. b. Employers can use education as a screen to match talented employees with high-skill jobs. c. Employers can save the costs of on-the-job training, which is less efficient than a general education. d. It allows low-ability employees to apply for high-salary jobs.
A sign that Country A is under pressure to devalue its currency is its:
a. Overall balance is in surplus. b. Financial account is in deficit. c. Overall balance is in deficit. d. Reserves account is in deficit (i.e., negative). e. All of the above.
According to Say's law, there cannot be overproduction of goods and services because:
A. planned aggregate expenditures sometimes fall short of total output. B. prices and wages are "sticky" or inflexible in the downward direction. C. demand creates its own supply. D. supply creates its own demand.
If the price of cheese increases, the demand for hamburger buns will
A. decrease. B. remain constant. C. increase. D. shift to the right.