The Long-Run Effects of an Increase in Government Purchases Are

question 51

Multiple Choice

The long-run effects of an increase in government purchases are that interest rates will ____, inflation will ____, and real GDP will ____.

• A)decrease; decrease; remain unchanged
• B)increase; increase; remain unchanged
• C)remain unchanged; increase; remain unchanged
• D)increase; increase; increase
• E)decrease; increase; remain unchanged

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Definitions:

Eastern Cultures

Refers to the social norms, beliefs, practices, and material traits of societies originating from East Asia, South Asia, Southeast Asia, and the Middle East.

Generations

Generations are groups of people born and living around the same time, known for having shared experiences that shape their worldview.

Authoritative

Characterized by or showing a commanding, self-confident force or an ability to give instructions or directions.

Firm Controls

Strict rules or guidelines implemented to regulate behavior or operations within an organization or system.