According to the IS-MP-PC model, a lower level of government spending causes
A)lower GDP.
B)higher inflation.
C)higher GDP.
D)none of the above.

Name: According to the IS-MP-PC model, a lower level of government spending causes A)lower GDP. B)higher inflation. C)higher GDP. D)none of the above.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

According to the IS-MP-PC model, a lower level of government spending causes a decrease in aggregate demand, which leads to lower GDP.

According to the IS-MP-PC Model, a Lower Level of Government