The following diagram represents an economy in which government spending increases. PPF PPF2 C2 (0,0) Leisure, / -G2 What happens to the equilibrium wage and to GDP? Equilibrium wage: increases GDP: increases O Equilibrium wage: increases GDP: falls O Equilibrium wage: falls GDP: falls O Equilibrium wage: falls GDP: increases Consumption, C

The following diagram represents an economy in which government spending increases. PPF PPF2 C2 (0,0) Leisure, / -G2 What happens to the equilibrium wage and to GDP? Equilibrium wage: increases GDP: increases O Equilibrium wage: increases GDP: falls O Equilibrium wage: falls GDP: falls O Equilibrium wage: falls GDP: increases Consumption, C

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 1TY

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