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

question 58

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

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Definitions:

Constraints

Limitations or restrictions that impede progress or achievement.

Involved Targets

Stakeholders or entities directly affected by a specific action or policy.

Gender-role Stereotype

Preconceived notions or beliefs about the roles and behaviors appropriate for individuals based on their gender.

Expectation

A belief or anticipation regarding the outcome of certain events, actions, or behaviors.