In the Short Run,an Increase in Government Expenditures

question 322

Multiple Choice

In the short run,an increase in government expenditures

• A) raises the price level,but not real GDP.
• B) raises real GDP,but not the price level.
• C) raises real GDP and the price level.
• D) raises neither real GDP nor the price level.

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Definitions:

American Farmers

Refers to individuals in the United States engaged in the practice of agriculture, raising crops and livestock for consumption or sale.

Farm Goods

Products produced through agriculture, including crops, livestock, and other raw materials.

Increasing Production

Refers to the process of augmenting the output or manufacture of goods and services in an economy.

Agricultural Adjustment Act

A New Deal legislation passed in 1933 aimed at reducing agricultural production through financial incentives, thus raising farm prices.