Refer to Figure 16-12. An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2
Assuming a constant price level, the difference in real GDP between point A and point B will be ________ $200 billion.
A) less than
B) greater than
C) equal to
D) There is insufficient information given here to draw a conclusion.
B
Economics
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The demand for money curve slopes downward because a rise in the nominal interest rate ________ the opportunity cost of holding money and therefore ________ the quantity of money demanded
A) decreases; decreases B) increases; decreases C) decreases; increases D) increases; does not change E) increases; increases
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All else constant, an improvement in technology would cause a firm's total, average and marginal product functions to increase (graphically, shift up)
Indicate whether the statement is true or false
Economics