Multiple Choice
Imagine that a government starts out with the budget surplus.If in the next period the government temporarily runs a budget deficit,what would you expect to happen to aggregate demand?
A) AD would increase.
B) AD would lie on the Solow growth rate.
C) AD would stay the same.
D) AD would decrease.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Sticky wages will often help end a
Q13: A major hurricane hitting the East Coast
Q14: The first major event of the Great
Q15: A temporary decrease in consumer spending
Q16: The "Solow" growth rate represents an economy's
Q18: Economic growth is a smooth process.
Q19: If spending grows by 3%,real GDP growth
Q20: Prices are especially sticky in the:<br>A) upward
Q21: As a result of a positive
Q22: An unexpected increase in money growth increases