Refer to Figure 27-12. An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2
Assuming a constant price level, the difference in real GDP between point A and point B will be ________ $200 billion.
A) less than
B) equal to
C) greater than
D) There is insufficient information given here to draw a conclusion.
C
Economics
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When a person does not have to pay the full costs for using a scarce resource, then there is
A) an underproduction of a good. B) a negative externality. C) a positive externality. D) too little economic profit in the activity.
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Without the presence of international organizations such as the World Bank, the United Nations, and the WTO, transfers of funds from rich to poor countries would not exist in an ongoing manner
a. True b. False Indicate whether the statement is true or false
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