If the Government Increases Aggregate Demand When the Economy Is

question 86

Multiple Choice

If the government increases aggregate demand when the economy is at both short-run and long-run equilibrium,the full long-run effect of this fiscal policy will be to

• A)increase real GDP.
• B)increase the price level.
• C)increase either the real GDP or the price level,depending on the length of the time lag.
• D)decrease both real GDP and the price level.

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Definitions:

Optical Storage

A type of data storage that uses optical media, such as CDs and DVDs, to read and write data using lasers.

Flash Drive

A portable storage device that uses flash memory and is commonly used for data storage, backup, and transfer.

Hard Drives

Storage devices used to save and retrieve digital information using one or more rigid rapidly rotating disks coated with magnetic material.

BD

An abbreviation commonly used for Blu-ray Disc, a digital optical disc data storage format.