Taking into Account the Upward- Sloping Short- Run Aggregate Supply

question 417

Multiple Choice

Taking into account the upward- sloping short- run aggregate supply curve, the short- run effect of an increase in government expenditures on real GDP is that

• A) real GDP increases by the same amount in the short run as in the long run.
• B) real GDP does not change in the short run because the price level increases.
• C) real GDP increases by more in the short run than in the long run.
• D) real GDP increases by less in the short run than in the long run.

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Definitions:

Trust in Government

The degree of public confidence in a government's ability to act in the best interests of its citizens, often reflecting the perceived honesty, transparency, and competence of the government.

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A political ideology that advocates for a mix of democracy and socialism, emphasizing democratic governance alongside social ownership or regulation of the means of production.

Libertarianism

A political philosophy that emphasizes individual freedom, minimal government intervention, and the protection of personal liberty.

Fireside Chats

A series of radio broadcasts made by President Franklin D. Roosevelt to the American public, discussing various issues and policies during his presidency.