Along the 45-degree line,
A) spending equals income.
B) real GDP equals potential GDP.
C) spending is greater than income.
D) real GDP equals nominal GDP.
E) spending is equal to the marginal propensity to consume times income.
Correct Answer:
Verified
Q105: If government expenditures decrease, the expenditure line
Q106: The slope of the expenditure line is
A)greater
Q107: An increase in lump-sum taxes results in
A)both
Q108: Along the 45-degree line spending and income
Q109: The expenditure line
A)is steeper than the 45-degree
Q111: The slope of the expenditure line is
Q112: The expenditure line will shift if government
Q113: An increase in investment results in
A)a downward
Q114: Which of the following would not shift
Q115: Changes in T, I, G, and X
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