Which of the following statements characterizes government purchases in the United States between 2001 and 2011?
A) Government purchases as a share of GDP have declined.
B) Government purchases as a share of GDP have increased.
C) Government purchases as a share of GDP have remained constant.
D) Government purchases have fluctuated widely over this period.
Ans: B) Government purchases as a share of GDP have increased.
You might also like to view...
An increase in investment causes the price level to ________ in the short run and ________ in the long run
A) increase; increase further B) increase; decrease C) decrease; decrease further D) decrease; increase
When the Fed decides to enact expansionary monetary policy, the supply of loanable funds:
A. and the demand for loanable funds both decrease. B. and the demand for loanable funds both increase. C. increases, while the demand for loanable funds decreases. D. decreases, while the demand for loanable funds increases.