If Government Spending Increases,which of the Following Would Be Most

question 169

Multiple Choice

If government spending increases,which of the following would be most likely in the short and in the long run? (Both comparisons are with regard to the original price level/output combination. )

• A) Short-run increases in the price level,no change in output;long-run increases in output and in the price level
• B) Short-run increases in output and in the price level;long-run increase in output,decrease in the price level
• C) Short-run decreases in output and in the price level;long-run increase in the price level,no change in output
• D) Short-run increases in output and in the price level;long-run increase in the price level,no change in output
• E) Short-run decreases in output and in the price level;long-run decreases in output and in the price level.

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Definitions:

Procrastination

The action of delaying or postponing tasks or decisions, often habitually.

Rental Car

A vehicle rented from a company for a specific period of time, typically used for transportation during travel when one's own car is unavailable.

Penalty

A punishment imposed for breaking a law, rule, or contract.

Procrastination

The action of delaying or postponing tasks, often due to avoidance or poor time management, leading to stress or reduced productivity.