Assume that the economy is initially at its equilibrium level of GDP. What will happen to the equilibrium level of GDP if planned investment decreases by 20, government spending increases by 30, and taxes increase by 10?
A) GDP will decrease by 60
B) GDP will decrease by 10
C) there will be no change in GDP
D) GDP will increase by 10
D
Economics
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An increase in income shift a person's budget line rightward and does not change its slope
Indicate whether the statement is true or false
Economics
Refer to Figure 4-1. If the market price is $3.00, what is the maximum number of burritos that Arnold will buy?
A) 0 B) 2 C) 3 D) 4
Economics