Multiple Choice
Using the AD- AS model, an increase in government expenditure
A) has no impact on real GDP, but will increase potential GDP.
B) increases both real GDP and the price level.
C) has a full multiplier effect on real GDP, leaving the price level unchanged in the long run.
D) has no impact on real GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Automatic stabilization occurs<br>A) because government expenditures on
Q9: An advantage of automatic stabilizers over discretionary
Q10: Ignoring any supply- side effects, how does
Q12: Comparing the fiscal imbalance for the current
Q14: The government receives tax revenues from several
Q15: In 2007, Norway's government had revenue of
Q16: Automatic stabilizers are at work if, as
Q17: Suppose that real GDP equals potential GDP,
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