Ignoring any supply-side effects, if government expenditure on goods and services decrease by $10 Billion and taxes decrease by $10 billion, then real GDP-------------------- and the price level --------------------.
A) increases; falls
B) increases; rises
C) decreases; rises
D) decreases; falls
E) does not change; does not change
Correct Answer:
Verified
Q28: Q29: The supply-side effects of a change in Q30: The federal budget Q31: Needs-tested spending is defined as Q32: The government expenditure multiplier reflects the magnification Q34: An increase in government expenditure can-------------------- potential Q35: If the structural deficit is $800 billion Q36: If a tax cut increases aggregate demand Q37: Ignoring any supply-side effects, to close an Q38: If government expenditure increases by $200 billion
A)can have a deficit, a
A)spending by the
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