If Government Spending Increases,which of the Following Would Be Most

question 169

Multiple Choice

If government spending increases,which of the following would be most likely in the short and in the long run? (Both comparisons are with regard to the original price level/output combination. )

• A) Short-run increases in the price level,no change in output;long-run increases in output and in the price level
• B) Short-run increases in output and in the price level;long-run increase in output,decrease in the price level
• C) Short-run decreases in output and in the price level;long-run increase in the price level,no change in output
• D) Short-run increases in output and in the price level;long-run increase in the price level,no change in output
• E) Short-run decreases in output and in the price level;long-run decreases in output and in the price level.

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Definitions:

Designed Experiment

A structured investigation where researchers manipulate one or more variables to determine their effects on a response variable.

Organic Product

A substance or material produced through an organic chemical process.

Ethylbenzenesulfonic Acid

An organic compound derived from the sulfonation of ethylbenzene, utilized in various chemical synthesis processes.

Aqueous Acid

A solution where an acid is dissolved in water to increase its ion concentration.