The Short-Run Effect of an Increase in Government Purchases Is

question 98

Multiple Choice

The short-run effect of an increase in government purchases is

• A)a rightward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.
• B)a leftward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.
• C)a rightward shift of the aggregate demand curve and a downward shift of the inflation adjustment line.
• D)a rightward shift of the aggregate demand curve and movement along the inflation adjustment line.
• E)a leftward shift of the aggregate demand curve and movement along the inflation adjustment line.

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