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

question 90

Multiple Choice

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

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

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Definitions:

Concept

An abstract idea or a mental symbol that represents some aspect of the world, often forming the basis of thought.

Abstractness

The quality of being abstract; not related to concrete objects but expressing ideas and concepts at a higher level.

Geometric Figure

A set of points in space forming a shape that is defined by certain rules and properties, such as circles, triangles, and polygons.

Quadrilateral

A geometric shape that has four sides and four angles.