Author Question: The government wants to increase its spending by 1 billion to stimulate the economy and is counting ... (Read 64 times)

MGLQZ · **on:** Jun 30, 2018

The government wants to increase its spending by 1 billion to stimulate the economy and is counting on the government spending multiplier to hel

A) constructing more low income housing B) a new cruise missile for the military
C) expanding the school lunch program D) providing textbooks for college students

Question 2

Which of the following statements is correct?
I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only.
II.

Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.
A) I only B) II only C) Both I and II D) Neither I nor II