Multiple Choice
Which of the following measures the change of real GDP in the short run as a result of an increase in government purchases?
A) Spending balance
B) Potential GDP
C) Life-cycle model
D) Keynesian multiplier
E) 45-degree line
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Changes in the factors that underlie potential
Q4: The 45-degree line identifies<br>A)all possible equilibrium points.<br>B)All
Q5: Describe what happens to the aggregate expenditure
Q6: To compare economic fluctuations in different countries,
Q7: When Tom's income is $20,000, he spends
Q9: To simplify the analysis, the textbook assumes
Q10: According to the consumption function, as income
Q11: Which of the following statements is true?<br>A)A
Q12: When the unemployment rate is equal to
Q13: In normal times, when the economy is