The Long-Run Effect of an Increase in Government Spending Is

question 162

Multiple Choice

The long-run effect of an increase in government spending is to raise

• A)both real output and the price level.
• B)real output and lower the price level.
• C)real output and leave the price level unchanged.
• D)the price level and leave real output unchanged.

Comprehend how memory functions similarly to a computer and the use of memory strategies.

Recognize the importance of review timing for effective memory retention.

Acknowledge the role of intention level in retention and recall.

Identify effective memory strategies for different learning styles and situations.

---

Definitions:

Average Total Cost

The cost per unit of output, found by dividing the total cost (fixed plus variable) by the number of units produced.

Cigars

Rolled bundles of dried and fermented tobacco leaves designed to be smoked.

ATC and MC Curves

Graphs in economics that represent a firm's average total costs (ATC) and marginal costs (MC) at different levels of production.

Tax

Mandatory financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.