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

question 88

Multiple Choice

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

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

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Definitions:

Selection

The process of choosing or making a decision when faced with two or more possibilities.

Iteration

The repetition of a process or set of instructions in a program until a certain condition is met.

Iteration Structure

A programming construct used to repeat a block of code multiple times until a specified condition is met, examples include for, while, and do-while loops.

Sequence

An ordered collection of objects or values where each item is identifiable by its position within the collection.