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.

---

Definitions:

Medulla

The lower part of the brainstem, controlling vital autonomic functions such as heart rate, breathing, and blood pressure.

Pons

A part of the brain located in the brainstem that is involved in regulating breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.

Electroencephalogram (EEG)

A test that detects electrical activity in your brain using small, flat metal discs (electrodes) attached to the scalp.

Electrical Activity

The movement of electrical charges or signals through neurons in the body or through man-made devices.