In the classical model, a temporary increase in government purchases causes the new equilibrium to have
A. more employment and a lower real wage than before.
B. less employment and a higher real wage than before.
C. more employment and a higher real wage than before.
D. less employment and a lower real wage than before.
Answer: A
Economics
You might also like to view...
As in the United States, an important factor in the banking crises in Latin America was the
A) financial liberalization that occurred in the 1980s. B) decline in real interest rates that occurred in the 1980s. C) high inflation that occurred in the 1980s. D) sluggish economic growth that occurred in the 1980s.
Economics
Suppose that the consumer price index at year-end 2008 was 140 and by year-end 2009 had risen to 150 . What was the inflation rate during 2009?
a. 7.1 percent b. 10 percent c. 14.2 percent d. 50 percent
Economics