Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing Multiple Choice government spending by exactly $600 billion. government spending by less than $600 billion. taxes by more than $600 billion. taxes by exactly $600 billion.

Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing Multiple Choice government spending by exactly $600 billion. government spending by less than $600 billion. taxes by more than $600 billion. taxes by exactly $600 billion.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

Section: Chapter Questions

Problem 24CTQ: Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on...

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Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing
Multiple Choice
government spending by exactly $600 billion.
government spending by less than $600 billion.
taxes by more than $600 billion.
taxes by exactly $600 billion.

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