Multiple Choice
Classical economists argue that an increase in government expenditures will
A) shift FE line to right increasing full-employment output.
B) shift FE line to left decreasing full-employment output.
C) shift FE line to right increasing interest rate.
D) shift FE line to right decreasing labour supply.
Correct Answer:
Verified
Correct Answer:
Verified
Q44: A change that increases real money demand
Q45: The FE line is vertical because the
Q46: A temporary decline in government purchases would
Q47: Any change that reduces desired saving relative
Q48: An increase in the expected future marginal
Q50: An adverse supply shock to the economy
Q51: Which of the following would shift the
Q52: An increase in money demand causes the
Q54: An adverse supply shock that is permanent
Q79: When all markets in the economy are