If the expansionary effect of additional government expenditure ________ the contractionary effect of the fall in private investment, the labor demand curve ________
A) equals; will remain at its initial position B) exceeds; will shift to the left
C) equals; will shift to the right D) exceeds; will remain unchanged
A
You might also like to view...
Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent
If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent. A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2
At the beginning of the year, AAA-1 Towing owns trucks and buildings for a total value of $1 million. During the year, it invests $250,000 to replace towing trucks worth $230,000 destroyed in a flood and to cover $50,000 worth of depreciation
AAA-1 Towing's net investment was A) $20,000. B) $250,000. C) -$30,000. D) $200,000. E) $280,000.