An Increase in Government Purchases

question 150

Multiple Choice

An increase in government purchases

• A)has a positive effect on real GDP in the long run.
• B)has a negative effect on real GDP in the long run.
• C)results in a lower rate of inflation in the long run.
• D)results in lower interest rates in the long run.
• E)results in a higher rate of inflation in the long run.

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Definitions:

German Immigrants

People from Germany who have moved to another country, historically significant in shaping the demographics and culture of various nations, especially the United States.

Ethnic And Religious Diversity

The presence and acceptance within a society of a variety of cultural, ethnic, and religious groups.

Glorious Revolution

A pivotal event in British history (1688) marking the overthrow of King James II and the establishment of William III and Mary II as co-rulers, leading to the constitutional monarchy.