In the short run, an increase in government spending that causes an increase in the budget deficit
A) affects the level of output but not its composition.
B) affects both the level and composition of output.
C) affects only the price level.
D) is neutral.
E) none of the above
E
You might also like to view...
Job market signals like dressing well for interviews are not especially effective because:
A) the cost of dressing well is about the same for high-quality and low-quality workers. B) many businesses have adopted casual office attire, so dressing well is not important to the firm. C) federal labor laws prohibit firms from using dress or appearance as an employment criterion. D) none of the above
Answer the following statement(s) true (T) or false (F)
1. In a market economy, CEOs and other top executives own most of the resources. 2. The market system can work only if the government enforces the rules. 3. Inflation is defined as an increase in the overall price level in an economy. 4. Unemployment can occur because of seasonal fluctuations in demand.