1. True or False: Increased spending growth shifts the AD curve inward, and decreased spending growth...
1. True or False: Increased spending growth shifts the AD curve inward, and decreased spending growth shifts the AD curve outward.
2. True or False: An unexpected increase in money forth increases inflation but not real growth in the long run.
3. True or False: When unions exert a great deal of influence, the effect on labor markets is similar to that of a minimum wage.
Homework Answers
a) False, increased spending growth shifts the AD curve outward and decreased spending shifts it inward. The statement is just opposite.
b) True, in the long run an increase in the money will only lead to a higher inflation and not affect the output at all.
c) True, it will increase the unemployment and firms will use more capital intensive growth.
Add Answer to:
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