An increase in government spending
A) increases consumption and output.
B) increases consumption, decreases output.
C) decreases consumption, increases output.
D) decreases consumption and output.
Correct Answer:
Verified
Q43: The variable G considered in the model
Q44: How does an increase in the proportional
Q45: An increase in total factor productivity
A) increases
Q46: At the competitive equilibrium with a positive
Q47: Changes in total factor productivity are plausible
Q49: An increase in government spending shifts the
Q50: In response to an increase in total
Q51: An increase in government spending
A) increases consumption,
Q52: Which feature of the business cycle does
Q53: Changes in government spending are not likely
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