Suppose an Increase in Government Spending Stimulates Real GDP Without

question 22

Multiple Choice

Suppose an increase in government spending stimulates real GDP without affecting the price level. What is the relevant range of the aggregate supply curve in this case?

• A) the classical range
• B) the intermediate range
• C) the Keynesian range
• D) the monetarist range

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Definitions:

Long-term Version

The ability to focus on and plan for future achievements and outcomes over an extended period.

Scenario Planning

A strategic planning method that organizations use to envision and prepare for various future scenarios or outcomes.

Long-term Version

A strategic focus or approach that prioritizes long-term goals and outcomes over immediate gains or results.

Contingency Planning

The development of strategies and actions to deal with potential future events or situations that may disrupt normal operations.