61) Assuming both the price level and the interest rate are constant and government spending increases from G to G, the government spending multiplier is equal to
Answer is:
the difference (Y-Y) divided by the difference (G- G).
Related Macro Economics MCQ (GK Set-1) with Answers
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(A) real GDP; (B) interest rates; (C) the monetary policy
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the classical dichotomy
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output adjusts to demand
Answer is: