Refer to the diagram. The impact of the public sector on the equilibrium GDP:





A.  is expansionary.

B.  is contractionary.

C.  is neutral.

D.  cannot be determined from the information given.

A.  is expansionary.

Economics

You might also like to view...

When you are hungry, you receive the most satisfaction from the first apple and less satisfaction from each additional apple. What explains this?

a. income effect b. substitution effect c. law of elasticity of demand d. law of diminishing marginal utility

Economics

As of the end of 1994 the country in our survey with the smallest stock market in dollar terms was

A) the United States. B) the United Kingdom. C) Japan. D) Germany.

Economics