Which of the following leads to a decrease in real GDP?

A) an increase in interest rates
B) an increase in government spending
C) an increase in the inflation rate in other countries, relative to the inflation in the United States
D) Households have increasingly optimistic expectations about future income.

A

Economics

You might also like to view...

In the figure above, an economy would grow fastest if it produces at point

A) A. B) B. C) C. D) D.

View
Economics

In the absence of externalities, the optimal distribution of resources occurs when production is at

a. P = MC b. P = ATC c. TR = TC d. MC = MR e. P = AFC

View
Economics