In the Classical Model,a Temporary Increase in Government Purchases Causes

question 6

Multiple Choice

In the classical model,a temporary increase in government purchases causes the new equilibrium to have

• A)more employment and a lower real wage than before.
• B)more employment and a higher real wage than before.
• C)less employment and a lower real wage than before.
• D)less employment and a higher real wage than before.

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