Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher


Answer: A

Economics

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Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by

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Economics