Multiple Choice
An increase in government purchases
A) has a positive effect on real GDP in the long run.
B) has a negative effect on real GDP in the long run.
C) results in a lower rate of inflation in the long run.
D) results in lower interest rates in the long run.
E) results in a higher rate of inflation in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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