Decreasing government spending ________ the price level and ...

[darbym82]

Decreasing government spending ________ the price level and ________ equilibrium real GDP.
 
  A) increases; increases B) decreases; increases
  C) increases; decreases D) decreases; decreases

Question 2

When Toyota introduced its 2010 Prius, it announced that the average retail price of the 2010 model would be lower than the average retail price was for the equivalent 2009 model. Which of the following would explain the price differential?
 
  A) The supply of the Prius had decreased, and the demand for the Prius remained unchanged.
  B) The demand for the Prius had increased, and the supply of the Prius remained unchanged.
  C) The demand for the Prius had decreased, and the supply of the Prius had increased.
  D) The demand for the Prius had increased, and the supply of the Prius had decreased.

[amynguyen1221]

Answer to Question 1

D

Answer to Question 2

C

[darbym82]

Thanks for the timely response, appreciate it

[bigcheese9]

Great answer, keep it coming