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  3. Study Set
    Principles of Macroeconomics Study Set 12
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    Exam 11: The Determination of Aggregate Output, the Price Level, and the Interest Rate
  5. Question
    Other Things Equal, a Decrease in Government Spending ________ the Equilibrium
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Other Things Equal, a Decrease in Government Spending ________ the Equilibrium

Question 24

Question 24

Multiple Choice

Other things equal, a decrease in government spending ________ the equilibrium interest rate and ________ equilibrium output.


A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases

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