Author Question: Which of the following will not increase equilibrium output in the short run? A) increases in ... (Read 28 times)

xclash · **on:** Jun 30, 2018

Which of the following will not increase equilibrium output in the short run?

A) increases in R&D
B) increases in consumer confidence
C) increases in investment demand
D) increases in government spending
E) decreases in taxes

Question 2

Suppose the consumption equation is represented by the following: C = 250 + .75YD. Now assume government spending increases by 100 for the above economy. Given the above information, we know that equilibrium output will increase by

A) 200.
B) 400.
C) 800.
D) 1000.
E) none of the above