If There Is a Dollar-For-Dollar Direct Expenditure Offset, Then

question 57

Multiple Choice

If there is a dollar-for-dollar direct expenditure offset, then

• A) increases in aggregate demand will also increase long-run aggregate supply.
• B) increases in government spending will not increase aggregate demand.
• C) increases in aggregate demand will increase the price level, but leave real output unchanged.
• D) increases in aggregate demand will increase real output, but leave the price level unchanged.

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Definitions:

Pine

A type of evergreen tree that belongs to the genus Pinus, known for its needle-like leaves and woody cones.

Fir

A type of evergreen tree belonging to the genus Abies, known for its tall growth and needle-like leaves.

Spruce

A genus of coniferous trees found in northern temperate and boreal regions, valued for their wood and ornamental uses.

Adaptations

Changes or processes through which organisms or species evolve to become better suited to their environment.