According to the market clearing model, a one-unit permanent increase in government purchases causes:
A) GDP to rise about one unit.
B) consumption to fall about one unit.
C) gross investment to fall about one unit.
D) all of the above.
Correct Answer:
Verified
Q20: Government can use its funds to purchase
Q21: Among the government's uses of funds are;
A)government
Q22: In the market clearing model a permanent
Q23: Eurozone data since 1999 shows that permanent
Q24: According to the market clearing model a
Q26: People might work more during a war
Q27: In the market clearing model a permanent
Q28: According to the market clearing model a
Q29: Since the end of the Korean war,
Q30: In the market clearing model without government
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