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Author Question: Consider a closed economy described by AE (aggregate expenditures) = 800,000 + 0.75Y Assume that ... (Read 40 times)

Alainaaa8

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on: Jun 30, 2018
Consider a closed economy described by AE (aggregate expenditures) = 800,000 + 0.75Y Assume that this economy is initially in equilibrium. But now the government implements a program to improve highways that will cost 1 million. This implies that equilibrium real GDP will:
 a. decrease by 1 million.
  b. decrease by 4 million.
  c. increase by 1 million.
  d. increase by 4 million.
  e. decrease by 800,000.

Question 2

Which of the following is true of a demand curve?
 a. It must remain stable over time.
 b. It can shift either rightward or leftward.
 c. It is possible to move along the curve, but the demand curve will not shift.
  d. None of the above are true.


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jordangronback

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

b


Alainaaa8

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Reply #2 on: Jun 30, 2018
Correct answers!


jordangronback

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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