In the Case of an Upward-Sloping Aggregate Supply Curve,the Change

question 285

True/False

In the case of an upward-sloping aggregate supply curve,the change in real GDP brought about by a change in government spending will be less than that predicted by the simple government purchases multiplier.

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Definitions:

Foreign Firms

Companies that operate in a country other than where their headquarters are located.

Import Tariff

A tax imposed by a government on goods and services imported from other countries, intended to protect domestic industries and adjust trade balances.

Import Quota

A limit imposed by a nation on the quantity (or total value) of a good that may be imported during some period of time.

Restrictive

A term used to describe policies or measures that limit or control some form of activity or process.