Details of this Paper

If total spending is greater than the value of output

Description

solution


Question

If total spending is greater than the value of output, firms will;a) cut prices;b) decrease production levels;c) lower wages;d) raise prices;If productivity rises, we would expect;a) The aggregate supply curve to shift to the right;b) The aggregate supply curve to shift to the left;c) The aggregate demand curve to shift to the right;d) The aggregate demand curve to shift to the left. If we assume that the MPC is 0.75 and investment spending rises by $50;billion. How much will real GDP change?;a) $25 billion;b) $75 billion;c) $100 billion;d) $175 billion;e) $200 billion

 

Paper#24257 | Written in 18-Jul-2015

Price : $27
SiteLock