When the government closes an expansionary gap with a change in government spending, the _____ in government spending leads to _____
a. decrease; a decrease in both real GDP and the price level
b. decrease; a decrease in real GDP and an increase in the price level
c. decrease; an increase in both real GDP and the price level
d. decrease; an increase in real GDP and a decrease in the price level
e. increase; a decrease in both real GDP and the price level
a
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The table above shows a nation's production possibilities frontier. If the nation wants to produce 4 robots and 34 pizzas,
A) the nation will be producing inefficiently. B) the opportunity cost is 9 pizzas. C) it will shift the production possibilities frontier. D) it will be unable to do so because the production point is unattainable. E) the nation will then be producing at a production efficient point.
Robert Lucas, a Nobel laureate in economics, argues that there are ________ returns to human capital
A) negative B) decreasing C) constant D) increasing