In the short run, a decrease in government expenditure ________ real GDP and ________ the price level

A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases

D

Economics

You might also like to view...

Refer to the scenario above. Which of the following will happen if she keeps the dress for herself?

A) The GDP of her country will increase by $180. B) The trade deficit of her country will decrease. C) The GDP of her country will remain unchanged. D) The trade surplus of her country will decrease.

Economics

Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Carol and Brad made riskier investments than

either Albert or Diana, they most likely invested in a. common stock b. fixed-yield stocks c. indexed stocks d. corporate bonds e. low-yield dividends

Economics