Author Question: Other things equal, a decrease in government spending: a. increases the slope of the aggregate ... (Read 111 times)

tingc95 · **on:** Jun 30, 2018

Other things equal, a decrease in government spending:
a. increases the slope of the aggregate demand curve.
b. increases the domestic interest rate.
c. decreases aggregate expenditures.
d. shifts the aggregate demand curve to the right.
e. increases the equilibrium level of GDP.

Question 2

When economists assume that people act rationally, it means they:
a. make decisions based on complete and accurate information.
b. make decisions that will not be regretted later on.
c. make decisions based on what they believe is best for themselves using available information.
d. make decisions based solely on what is best for society.