Suppose There Has Been an Increase in Government Spending

question 146

Multiple Choice

Suppose there has been an increase in government spending.As a result, real GDP will ________ in the short run, and ________ in the long run.

• A)increase; increase further
• B)increase; decrease to its initial value
• C)decrease; decrease further
• D)decrease; increase to its initial level
• E)decrease; remain at this lower level

---

Definitions:

Europe

A landmass situated completely in the Northern Hemisphere and largely in the Eastern Hemisphere, recognized for its profound historical significance, varied cultures, and significant economic impact.

North America

A continent located in the Northern Hemisphere, bounded by the Arctic Ocean, Atlantic Ocean, and the Pacific Ocean, comprising primarily of Canada, the United States, and Mexico.

Australia

A country and continent surrounded by the Indian and Pacific oceans, known for its Sydney Opera House, Great Barrier Reef, and unique wildlife.

Same-sex Activity

Romantic or sexual acts between individuals of the same sex.