Using the AD-AS Model, an Increase in Government Expenditure

question 158

Multiple Choice

Using the AD-AS model, an increase in government expenditure

• A) has no impact on real GDP.
• B) has no impact on real GDP, but will increase potential GDP.
• C) increases both real GDP and the price level.
• D) has a full multiplier effect on real GDP, leaving the price level unchanged in the long run.

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Definitions:

Pseudocommando Mass Murderer

An individual who commits mass murder with detailed planning and a sense of a mission, often involving a quest for revenge or a belief in a particular ideology.

Firearms

Weapons, such as guns, designed to discharge projectiles (bullets, shells, etc.) at high speeds, typically used for self-defense, hunting, or as tools of warfare.

Mass Murder

The act of murdering a large number of people, typically at the same time or over a relatively short period of time, by a single person or a group.

Borderline Personality Disorder

A mental health disorder characterized by pervasive patterns of instability in interpersonal relationships, self-image, and emotions.