What Is the Difference Between the Short Run and the Long

question 77

Multiple Choice

What is the difference between the short run and the long run when there is full employment and the government engages in deficit spending?

• A) Real GDP will increase in both the short run and the long run.
• B) Real GDP will increase in the long run but not the short run.
• C) Real GDP will increase in the short run but not the long run.
• D) Real GDP will not increase in either the long run or the short run.

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Definitions:

Embryonic Stage

The period in prenatal development from fertilization until around the end of the eighth week, where significant growth and differentiation of the embryo occurs.

Teratogen

Any agent that can cause developmental malformations (birth defects) in a fetus when exposure occurs during pregnancy.

Environmental Toxins

Harmful pollutants or chemicals present in the environment that can cause adverse health effects on humans and wildlife.

Alcohol

A psychoactive substance that is found in beverages such as beer, wine, and spirits, and can alter mood, cognition, and behavior.