If transfer payments increase then we would most likely conclude what about government spending as a result of this increase?
A. We cannot reasonably conclude anything about government spending.
B. Since transfer payments have gone up this has caused government spending to decrease.
C. Since transfer payments have gone up this has caused government spending to increase.
D. Government spending would not change if transfer payments increase.
D. Government spending would not change if transfer payments increase.
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If the AD curve shifts rightward, then
A) both the price level and real GDP will decrease. B) both the price level and real GDP will increase. C) the price level will increase, but no change will occur in real GDP. D) the price level will not change, but real GDP will increase. E) potential GDP increases.
The Lost Decade refers to the years between approximately
A) 1975 and 1985. B) 1980 and 1990. C) 1987 and 1997. D) 1972 and 1980. E) 1960 and 1970.