Consider a closed economy described by AE (aggregate ...

[Alainaaa8]

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.

[jordangronback]

Answer to Question 1

d

Answer to Question 2

b

[Alainaaa8]

Correct answers!

[jordangronback]

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