Multiple Choice
When government purchases increase,the spending multiplier tells us the
A) amount of movement along the aggregate demand curve
B) amount of movement along the aggregate supply curve
C) size of the rightward shift of the aggregate demand curve at a given price level
D) size of the rightward shift of the aggregate supply curve at a given price level
E) size of the expansionary gap
Correct Answer:

Verified
Correct Answer:
Verified
Q52: Equal increases in government purchases and in
Q52: Assume autonomous net taxes fall by $300;
Q53: A decrease in autonomous net taxes<br>A)increases GDP
Q55: If the MPC is 0.75,a decrease in
Q56: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q58: Exhibit 11-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 11-5
Q59: "Net taxes" equals "taxes minus transfer payments."
Q60: An increase in the MPC will increase
Q61: If government expenditures or taxes are assumed
Q62: Government military spending affects aggregate demand the