Equal increases in government spending and taxes will:
a. cancel each other out so that the equilibrium level of real GDP will remain unchanged.
b. lead to an equal decrease in the equilibrium level of real GDP.
c. lead to an equal increase in the equilibrium level of real GDP.
d. lead to an increase in the equilibrium level of real GDP real GDP that is larger than the initial change in government spending and taxes.
e. lead to an increase in the equilibrium level of output that is smaller than the initial change in government spending and taxes.
c
You might also like to view...
If the employment-population ratio in 2015 was at the same level as it was in 2006,
A) the same number of people would have been working in 2015 as were working in 2006. B) the number of employed people in 2015 would not have been different. C) an additional 8 million people would have been working in 2015 than actually were. D) 3.5 million fewer people would have been working in 2015 than actually were.
Productivity is defined as:
a. output per unit of capital. b. output per labor hour. c. output divided by the price level. d. the percentage change in total annual output.