Ignoring any supply-side effects, if government expenditure on goods and services decreases by $10 billion and taxes decrease by $10 billion, then real GDP ________ and the price level ________
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
E) does not change; does not change
D
Economics
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Mexico pegged its exchange rate to the U.S. dollar in the 1980s
A) to maintain a similar unemployment rate to the United States B) in an attempt to abandon the peso and switch to U.S. dollars as currency. C) to signal investors that Mexico was serious about controlling inflation. D) to discourage foreign investment.
Economics
Why do banking panics normally lead to recessions?
What will be an ideal response?
Economics