Which of the following will be observed if the U.S. federal government reduces fiscal spending, keeping other things constant?
a. The aggregate demand curve will shift to the right.
b. The aggregate expenditure in the economy will decrease.
c. The economy will approach potential GDP.
d. The marginal propensity to consume will increase.
e. The average price level will increase.
b
Economics
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From an economic point of view, _____ makes a lot of sense because it takes advantage of the gains produced by specialization
a. bicameral legislatures b. representative democracy c. proportionality in the House of Representatives d. bureaucracy
Economics
Which of the following will cause an economy to grow?
a. greater availability of resources b. an improvement in the size of resources c. technological declines in existing use of resources. d. none of the above will cause an economy to grow
Economics