Refer to Figure 16-11. If government purchases increase by $100 billion and lead to an ultimate increase in aggregate demand as shown in the graph, the difference in real GDP between point A and point B will be
A) more than $100 billion.
B) less than $100 billion.
C) $100 billion.
D) There is insufficient information given here to draw a conclusion.
A
Economics
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What is one reason why would corn production, which takes place in a perfectly competitive market, achieve an efficient use of resources?
A) because a perfectly competitive firm produces at the lowest possible long run average total cost B) because a perfectly competitive firm produces where marginal revenue exceeds marginal cost C) because a perfectly competitive firm is a price maker D) because the goal of a perfectly competitive firm is to profit maximize
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Refer to Figure 4-15. What is the size of the per-unit tax?
A) $2 B) $5 C) $7 D) $12
Economics