According to the traditional Keynesian approach, if the government increases spending by $5 million and raises current taxes by $5 million at the same time, then
A) real GDP will increase by $5 million.
B) real GDP will decrease by $5 million.
C) real GDP will decrease by more than $5 million.
D) real GDP will remain the same.
A
Economics
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Which of the following is true of perfect competition but not true of monopoly?
a. The firm's average total cost curve is U-shaped. b. Marginal revenue is equal to price. c. A profit-maximizing firm chooses output where marginal revenue equals marginal cost. d. Profits may exist in the short run.
Economics
The present value of a promise to pay $100 one year from now is approximately $90.91 if the interest rate is 10 percent
a. True b. False
Economics