AP Economics MCQ
AP Economics Unit 3
Assume the aggregate supply curve is upward sloping and the economy is in a recession. If the government increases both taxes and government spending by $25 billion, the price level and real GDP will most likely change in which of the following ways?
Assume the aggregate supply curve is upward sloping and the economy is in a recession. If the government increases both taxes and government spending by $25 billion, the price level and real GDP will most likely change in which of the following ways?
Assume the aggregate supply curve is upward sloping and the economy is in a recession. If the government increases both taxes and government spending by $25 billion, the price level and real GDP will most likely change in which of the following ways?
Price Level Real GDP
A. Increase Increase
B. Increase Decrease
C. Increase No change
D. Decrease Decrease
E. Decrease No change
Answer: A
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