If the Economy Is Already at Its Potential Output,then the Spending

question 137

Multiple Choice

If the economy is already at its potential output,then the spending multiplier is:

• A)zero in the long run.
• B)infinite in the long run.
• C)equal to 1 in the long run.
• D)zero in the short run.
• E)equal to 1 in the short run.

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