The equilibrium level of real GDP is defined as?
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Equal increases in government spending and taxes will:
a. cancel each other out so that the equilibrium level of real GDP remains unchanged.
b. lead to an increase in the equilibrium level of GDP.
c. lead to an equal increase in the equilibrium level of real GDP.
d. lead to an increase in the equilibrium level of real GDP output that is larger than the initial change in government spending and taxes.Ā
Equal increase in government spending and taxes will
b. lead to an equal decrease in the equilibrium level of real GDP.
d. lead an increase in the equilibrium level of change in government spending and taxes.
Economic growth is best defined as an increase in:
A. Real GDP or real per capita GDP
B. Nominal GDP
C. Consumption expenditure
D. Total wealth
Ā
