Everything else held constant, an increase in government spending will cause
A) aggregate demand to increase.
B) aggregate demand to decrease.
C) the quantity of aggregate demand to increase.
D) the quantity of aggregate demand to decrease.
A
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Irregular fluctuations in economic activity are known as the
a. business cycle. b. broken window fallacy. c. tradeoff between inflation and unemployment. d. ten principles of economics.
Which component of aggregate demand is most impacted by the foreign trade effect?
a. investment spending b. consumption c. net exports d. government purchases
If the demand curve for a product is vertical, then
A) the demand for the product is elastic. B) the demand for the product is perfectly elastic. C) only a certain amount of the product will be consumed regardless of price. D) the price elasticity of the product approaches zero.
A system that assesses proportionately higher taxes on the rich than it does on the poor is called a ________
Fill in the blank(s) with correct word