There Is Zero Crowding Out and the Federal Budget Is

question 72

Multiple Choice

There is zero crowding out and the federal budget is balanced at the time government purchases are increased.It follows that the __________ curve shifts to the __________,and in the short run both the price level and Real GDP __________.

• A) AD; left; rise
• B) AD; right; fall
• C) AD; right; rise
• D) AD; left; fall
• E) SRAS; right; rise

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Definitions:

Installation

refers to the process of setting up and configuring equipment or software to make it ready for use.

Repairs

Expenditures to restore or maintain an asset in its normal operating condition without significantly improving its life or value.

Machine

An equipment or apparatus designed to perform a specific task, often powered by electricity or mechanical energy.

Land Improvement

Enhancements made to a piece of land to increase its value, such as landscaping, paving, and installing utilities.