Question: 35. A decrease in government purchases will do which of the following in the long run? a. increase unemployment b. decrease real output c. decrease

35. A decrease in government purchases will do which of the following in the long run?

a. increase unemployment

b. decrease real output

c. decrease the price level

d. all of the above


Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Macroeconomics Questions!

Q:

1. Of the following statements, which explain why the crowding-out effect indicates government spending increases that are financed by the sale of Treasury bonds to the public will not necessarily...

Q:

(1) If the supply curve and the demand curve for lettuce both shift to the right by an equal amount, what can we say about the resulting changes in equilibrium price and quantity? Group of answer...

Q:

20 FRQ Sec 05 Module 29 ADAS Fiscal Loanable Funds NRU 2022 a. Assume a country's economy is operating below full employment. Draw an AD/AS Model and show each of the following. i. The current...

Q:

Name Draw LRAS. What does LRAS stand for? LRAS 2. In your own words, explain a) Conclusion: An increase in demand can change GDP in the what LRAS represents. the long run. _ but will only create...

Q:

Assume there is an increase in productivity and a decrease in wealth. Based on these changes, which of the following is correct for the U.S.? Real GDP will increase, unemployment will decrease, and...

Q:

Part 1 - Check Your Understanding- For each of the policy combinations below, identify if the aggregate demand, real output, and price level will increase, decrease, or be indeterminate. Price Policy...

Q:

e) You have shown and explained how this permanent decrease in money supply will cause a change in the short-run equilibrium exchange rate. Other things being equal, this short-run change in the...

Q:

1. Which policy decisions will cause the government to operate using a budget deficit? If government is running a budget deficit they will have to borrow money through the sale of bonds. What will be...

Q:

Help solve this....ONLY ANSWER WITH EXPLANATION will be accepted 5. Which of the following is included in the 8. Which of the following workers is most likely to investment component of real gross...

Q:

There are no right or wrong answers, i just want to see how you would go about answering them. I just need a different perspective on the answers. J. Households suddenly become thriftier and want to...

Q:

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a: a. Sales invoice b. Receiving...

Q:

Hendrix Entertainment Center has 5 televisions on hand at the balance sheet date. Each cost $400. The current replacement cost is $380 per unit. Under the lower-of-cost-or-market basis of accounting...

Q:

me make answers: watch video then answer questions: https://www.youtube.com/watch?v=7kVQtQEUMoQ 1. Which option resulted in having more money? Explain the role compound interest played in making this...

Q:

In this exercise, assume that we are considering enhancing a machine by adding vector hardware to it. When a computation is run in vector mode on the vector hardware, it is 10 times faster than the...