In the medium run, an increase in government spending that causes an increase in the budget deficit
A) affects the level of output but not its composition.
B) affects both the level and composition of output.
C) will not affect the composition of output but will affect the price level.
D) is neutral.
E) none of the above
E
Economics
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A positive network externality associated with a good:
A. is not associated with the value of a good in any way. B. yields more intrinsic value than without it. C. yields more extrinsic value but less intrinsic value from its consumption. D. results in less intrinsic or extrinsic value.
Economics
Suppose money supply (M) = $500, price level (P) = 2, and real GDP (Y) = $1,000. Calculate the value of velocity using the equation of exchange.
A) 1 B) 2 C) 4 D) 5
Economics