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Subject - Economics:

Macroeconomics

MCQ - 192-4202

Question:

Suppose that the federal government reclassified the purchase of a new home as consumption spending rather than investment spending. This decision would

  1. increase aggregate demand and decrease real GDP.
  2. decrease aggregate demand and decrease real GDP.
  3. decrease aggregate demand and increase real GDP.
  4. decrease aggregate demand and decrease real GDP.
  5. have no impact on aggregate demand and real GDP.

Correct Answer: E

Explanation:

This reclassification would not affect AD or tabulation of GDP.

Record Performance

269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Suppose that the federal government reclassified the purchase of a new home as consumption spending rather than investment spending. This decision would , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 192-4202.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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