In the Long-Run,an Increase in the Budget Deficit and an Expansionary

question 64

Multiple Choice

In the long-run,an increase in the budget deficit and an expansionary monetary policy would:

• A)increase the price level only.
• B)increase both the price level and real income.
• C)increase real income only.
• D)none of the above.

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Definitions:

Strip Mall

A shopping area characterized by a row of retail stores, services, or restaurants, typically with a shared parking area in front.

Central Business District

The commercial and often geographic heart of a city, characterized by high-density business, retail, and office spaces.

Extreme-Value Retailer

A retail store that offers products at significantly lower prices than those of competitors, often focusing on discount or clearance items.

Family Dollar

A popular chain of variety stores in the United States offering a wide range of products at discounted prices, catering to budget-conscious consumers.