Based on our understanding of the IS-LM model that takes into account dynamics, we know that an increase in government spending will cause
A) a gradual increase in i and gradual increase in Y.
B) an immediate increase in Y and immediate drop in i.
C) an immediate increase in i and no initial change in Y.
D) a gradual increase in i and an immediate increase in Y.
A
Economics
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A reduction in tax rates may result in a short-term reduction in government revenues, but it will also leave people with more disposable income.
a. true b. false
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Lower levels of education and training are often associated with low levels of
A. production. B. productivity. C. inflation. D. both a and b.
Economics