In the Medium Run,an Increase in Government Spending That Causes

question 27

Multiple Choice

In the medium run,an increase in government spending that causes an increase in the budget deficit

• A)affects the level of output but not its composition.
• B)affects both the level and composition of output.
• C)will not affect the composition of output but will affect the price level.
• D)is neutral.
• E) none of the above

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Definitions:

Fraudulent Misrepresentation

The intentional act of making a false statement about an important fact to induce another person into entering a contract or transaction.

Intentional Harm

Deliberate actions taken by an individual or entity that are meant to cause injury or damage to another.

Conversion

In law, the unauthorized act of possessing or controlling personal property belonging to another, effectively converting it to one's own use.

Nuisance

An act, condition, or thing that interferes with the use or enjoyment of property or may be harmful or annoying to others.