​ Beginning from Full-Employment Macro Equilibrium, Increase in Government Spending

question 23

Multiple Choice

​ Beginning from full-employment macro equilibrium, increase in government spending will cause real GDP to:

• A) ​increase in the short run.
• B) ​decline in the long run.
• C) ​decline in the short run.
• D) ​ increase in the long run.

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