An increase in government spending
A) increases consumption, increases hours worked, and increases the real wage.
B) reduces consumption, increases hours worked, and increases the real wage.
C) reduces consumption, increases hours worked, and reduces the real wage.
D) reduces consumption, reduces hours worked, and reduces the real wage.
Correct Answer:
Verified
Q46: At the competitive equilibrium with a positive
Q47: Changes in total factor productivity are plausible
Q48: An increase in government spending
A) increases consumption
Q49: An increase in government spending shifts the
Q50: In response to an increase in total
Q52: Which feature of the business cycle does
Q53: Changes in government spending are not likely
Q54: Proportional income taxation is distorting because
A) people
Q55: A one-unit increase in government expenditures should,according
Q56: An increase in total factor productivity shifts
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