Multiple Choice
In the short run, when government purchases decrease, real GDP falls by more than the change in government purchases because
A) prices increase.
B) taxes increase.
C) consumption decreases.
D) investment decreases.
E) taxes decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q136: In economics, the short run is an
Q137: If government purchases change, which variable is
Q138: If a price shock caused by a
Q139: The tendency of prices to adjust over
Q140: If ever real GDP is above potential
Q142: A change in the price of a
Q143: The long-run effect of a change in
Q144: According to real business cycle theory, changes
Q145: When Paul Volcker first started to head
Q146: A price shock is typically caused by