In the Short Run, an Increase in Government Expenditure on Goods

question 71

Multiple Choice

In the short run, an increase in government expenditure on goods and services ________ real GDP and ________ the price level.

• A)decreases; increases
• B)decreases; decreases
• C)increases; decreases
• D)increases; increases

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Definitions:

Disclosure

The provision of relevant financial and other significant information by a company to its stakeholders and the public, ensuring transparency and informed decision-making.

Fair Value Adjustments

Adjustments made to the carrying value of an asset or liability to reflect its current market value.

Pre-acquisition Equity

The equity value of a company before being acquired by another entity, used to assess the financial status and baseline worth of the target company.

Revaluation Surplus

An increase in the carrying amount of an asset, recognized in equity, when its fair value exceeds its carrying amount.