Multiple Choice
In the long run, a permanent increase in government spending will
A) lead to a permanently higher level of real output.
B) lead to a permanently higher price level.
C) lead to a permanently higher level of investment spending.
D) have no effect on the level of output, the price level, or the level of investment spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q63: Many economists believe that changes in the
Q64: Economists generally believe that prices are<br>A)always perfectly
Q65: In a large open economy, an increase
Q66: Which of the following would NOT cause
Q67: In macroeconomic models, Y stands for<br>A)only aggregate
Q69: An increase in the price level<br>A)decreases real
Q70: Suppose that computer hackers are able to
Q71: If government purchases decrease, the IS curve
Q72: In general equilibrium, an increase in the
Q73: Which of the following will NOT cause