A newspaper story states, "For the fourth straight quarter, the nation purchased more goods from abroad than ever before." The event described would
A) increase the equilibrium level of GDP.
B) decrease the equilibrium level of GDP.
C) make no change in the equilibrium level of GDP.
D) increase, decrease, or make no change in the equilibrium level of GDP; we cannot tell from the information given.
Correct Answer:
Verified
Q147: A tax cut will have a greater
Q148: The amount by which an aggregate expenditures
Q149: Which event would most likely decrease an
Q150: Leakages from the income-expenditure stream are
A)consumption, saving,
Q151: Injections into the income-expenditure stream include
A)transfer payments
Q153: If a government raises its expenditures by
Q154: Assuming that MPC is 0.75, equal increases
Q155: Other things being equal, the effect of
Q156: If a lump-sum tax of $40 billion
Q157: In the aggregate expenditures model, the equilibrium
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