If there is an increase in government purchases, real GDP will
A) increase by more than the amount of the purchases.
B) increase by less than the amount of the purchases.
C) not change.
D) increase by the amount of the purchases.
E) decrease by less than the amount of the purchases.
Correct Answer:
Verified
Q121: If the marginal propensity to consume increases,
A)firms
Q122: According to the spending balance model, a
Q123: Suppose the expenditure line is given by
Q124: The 45-degree line identifies
A)all possible equilibrium points.
B)All
Q125: If real GDP is less than spending,
Q127: Answer the questions below: Q128: If spending is greater than output, a Q129: Answer the questions below: Q130: Equilibrium output in the short run, as Q131: When spending equals income, people consume according
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