In the long run, an increase in government spending, other things equal, generates
A) a higher real GDP in the long run.
B) a lower real GDP in the short run.
C) a higher price level.
D) both a higher real GDP and a lower price level.
C
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Which of the following can be a signal of product quality to customers?
a. Discounts offered on bulk purchases of the product. b. Gift of complementary products offered to purchasers. c. The information provided by the salesperson about the product. d. A warranty provided along with the product.
If a 10-year Treasury bond pays 1.5% and a 10-year corporate bond pays 4.4%, then the spread on this particular corporate bond is 5.9%
a. True b. False Indicate whether the statement is true or false
Which of the following is TRUE for the perfectly competitive firm?
A) Price and MR are always equal. B) AR is less than price. C) AR is more than price. D) Price elasticity of demand is equal to 1.
The law of one price works well for ________ traded commodities.
A. heavily B. all C. domestically D. rarely