Which of the Following Best Explains What Will Happen If

question 110

Multiple Choice

Which of the following best explains what will happen if government purchases decline?

• A)For any given rate of inflation, real GDP will decrease.
• B)For any given rate of inflation, real GDP will increase.
• C)For any given rate of inflation, potential GDP will increase.
• D)There will be an upward movement along the AD curve.
• E)There will be a downward movement along the AD curve.

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