Investment decreases by $300 billion, government expenditure is unchanged, and exports increase by $500 billion. As a result, autonomous expenditure ________, the total expenditure ________, and equilibrium real GDP ________
A) increases by $800 billion; increases; increases by more than $800 billion
B) increases by $200 billion; increases; increases by more than $200 billion
C) decreases by $300 billion; decreases; decreases by more than $300 billion
D) is unchanged; is unchanged; is unchanged
E) increases by $500 billion; is unchanged; increases by more than $500 billion
B
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Refer to the Article Summary. The unexpected increase in the supply of oil mentioned in the article summary resulted in a decrease in the price of oil
After an unexpected decrease in the price of oil, the long-run adjustment ________ the price level and ________ the unemployment rate as they return to their original levels. A) increases; increases B) decreases; increases C) increases; decreases D) decreases; decreases
Balance of payments crises under fixed exchange rates occur because of
A) government policies that are inconsistent with fixed exchange rates. B) punitive currency wars. C) global inflation and trade imbalances due to war. D) excessive exports and imports that overload the global system. E) monotonic expansion in global currency volume.