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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Involved Alcohol

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Single Vehicle

Often describing accidents, involving only one vehicle that does not collide with another vehicle but may hit an object or roll over.

Grade Point Average

A numerical calculation representing the average value of the accumulated final grades earned in courses over time.

Upper Class

In statistics, this often refers to the highest interval or category in a distribution; in sociology, it refers to the group of individuals at the top of a social hierarchy based on wealth, education, or power.