If Government Spending Rises Less Than Expected, Then the Equilibrium

question 33

Multiple Choice

If government spending rises less than expected, then the equilibrium price level rises under the

• A) new classical model.
• B) new Keynesian model.
• C) both of the above.
• D) none of the above.

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Definitions:

Cash Over and Short

An account used to report a discrepancy between the physical cash counted and the expected amount in a company's records, representing either an excess or shortage.

Journal Entry

The record of a financial transaction in an accounting system whereby debits and credits are made to various accounts to maintain balance.

Petty Cash

A small amount of cash kept on hand for making immediate payments for small expenses.

Cash Over and Short

An account that records discrepancies between physical cash and recorded amounts due to errors or theft.