When government spending increases and taxes do not:
A) short-run equilibrium output falls, because government borrows from the public to carry out its increased spending.
B) short-run equilibrium output rises because aggregate expenditure has increased.
C) short-run equilibrium output remains the same.
D) short-run equilibrium output falls because of aggregate expenditure increases.
Correct Answer:
Verified
Q2: In 2006, the total revenues in Canada:
A)
Q3: Which of the following statements is false?
A)
Q4: Government activity affects aggregate demand by:
A) their
Q5: Which of the following is false?
A) AE=C+I+G+X-Z.
B)
Q6: If the MPC is 0.8 out of
Q8: An equilibrium income in an open economy
Q9: Other things remaining the same, an increase
Q10: If income tax rate increases:
A) disposable income
Q11: Other things constant, if the government imposes
Q12: Assume that the MPC out of disposable
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