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

question 322

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

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