Multiple Choice
Which of the following statements is true?
A) A change in government purchases affects income.However, the change in income does not affect consumption.
B) A change in government purchases does not affect income or consumption.
C) A change in government purchases affects GDP, which is the same as income.The change in income affects consumption.
D) A change in government purchases affects GDP but not income.
E) A change in government purchases has no effect on GDP, but it does affect consumption.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Exhibit 23-6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 23-6
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
Q8: Which of the following measures the change
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