In the Short-Run Along the Horizontal Portion of the Aggregate

question 79

Multiple Choice

In the short-run along the horizontal portion of the aggregate supply curve,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:

Severe Injuries

Significant physical harm or damage to a person's body that requires extensive medical treatment.

Insurance Agent

A professional who sells insurance policies and advises clients on insurance matters.

Law Merchant

A body of commercial law that merchants developed over centuries, based on common practices and used to resolve disputes.

Magna Carta

A charter of liberties to which the English barons forced King John to give his assent in 1215; a document constituting a fundamental guarantee of rights and privileges.