"A rise in government expenditures raised output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________

A) rose; rise
B) rose; fall
C) fell; rise
D) fell; fall


A

Economics

You might also like to view...

A constant marginal rate of substitution between two goods implies that they are

A) perfect complements. B) perfect substitutes. C) independent goods. D) unattainable.

Economics

When people become unemployed because of a higher minimum wage, this type of unemployment is called

a. frictional. b. structural. c. cyclical. d. abnormal.

Economics

The most common form of business organization, as far as the number of such firms in business, is the

A) proprietorship. B) partnership. C) corporation. D) S corporation.

Economics

The economic impact of automatic stabilizers during ________ periods is to decrease taxes.

A. growth B. recessionary C. expansionary D. inflationary

Economics