Assuming a Long-Run Aggregate Supply Curve, an Increase in Government

question 82

Multiple Choice

Assuming a long-run aggregate supply curve, an increase in government spending results in ________ in output and ________ in prices.

• A) no change; a decrease
• B) no change; an increase
• C) a decrease; a decrease
• D) an increase; no change

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Definitions:

Christian Faith

A monotheistic religion based on the life and teachings of Jesus Christ, emphasizing values such as love, forgiveness, and eternal life.

Love of Freedom

A deep affection or zeal for autonomy and self-determination, both personally and collectively.

Unilateral Force

The use of military or political power by one nation without the support or consent of other countries.

Middle East

A region that encompasses Western Asia and Egypt, known for its historical, cultural, and geopolitical significance.