The long-run overall effect of decreased government purchases is that
A) investment is higher.
B) consumption and net exports are the same, and investment is higher.
C) consumption is lower, and investment is higher.
D) consumption and net exports are higher.
E) consumption, investment, and net exports are all higher.
Correct Answer:
Verified
Q20: The initial response of real GDP to
Q21: Suppose real and potential GDP are initially
Q22: In economics, the short run is an
Q23: In the short run, when government purchases
Q24: The short-run effect of a change in
Q26: If exports permanently decline, we would expect,
Q27: The IA line does not shift in
Q28: In the economic fluctuations model, the so-called
Q29: The long-run interest rate effect of decreased
Q30: The tendency of prices to adjust over
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents