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:

Activity-Based Costing

A strategy for pricing that assigns overhead and indirect costs to products and services according to the specific activities they need.

Complexity-Related

Costs or metrics that arise due to the complexity of operations, products, or services.

Size-Related

Characteristics, measurements, or dimensions of an object, system, or process that pertain to its size.

Order-Related

typically refers to costs, activities, or processes that are directly associated with filling specific customer orders.