The development of a new and cheap source of energy will result in?

Question

The development of a new and cheap source of energy will result in

a. a higher amount of production at every price level.

b. a higher price level and a higher amount of production.

c. a lower profit at every price level.

d. a lower amount of production at every price level.

e. a lower price level and a lower amount of production.

Other things equal, an increase in government spending

a. increases the slope of the aggregate demand curve.

b. shifts the aggregate demand curve to the left.

c. increases aggregate expenditures.

d. increases the slope of the aggregate supply curve.

e. reduces the equilibrium level of GDP.

Answer 1

a. a higher amount of production at every price level.

c. increases aggregate expenditures.