If the economy is in a recession, and the government increases its spending to bring the economy back to its long-run equilibrium, the long-run level of output will:
A. return, with higher prices.
B. return, as will the original price level.
C. return, with lower prices.
D. increase, with higher prices.
A. return, with higher prices.
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Define a sole proprietorship
What will be an ideal response?
If a producer is not able to expand its plant capacity immediately, it is
A) operating in the long run. B) operating in the short run. C) losing money. D) bankrupt.
Which of the following changes in the exchange rate represents a depreciation of the dollar?
a. 100 yen = $1 to 110 yen = $1 b. 1 yen = $.10 to 1 yen = $.08 c. 1 peso = $10 to 1 peso = $11 d. 200 francs = $10 to 250 francs = $10
A country could correct a balance-of-payments surplus by
A. Expansionary fiscal policy. B. Contractionary monetary policy. C. Increasing tariffs on imported goods. D. Decreasing the money supply.