Multiple Choice
Which of the following best explains what will happen in the short run if government purchases increase?
A) Real GDP, consumption, and investment will increase.
B) Potential GDP will increase.
C) Real GDP and consumption will increase.
D) Real GDP will increase.
E) All of these
Correct Answer:

Verified
Correct Answer:
Verified
Q76: A firm increases prices only if the
Q77: Assuming constant inflation, a shift of the
Q78: Unlike the demand for bananas in a
Q79: The equation for the real interest rate
Q80: The economic fluctuations model is used<br>A)for all
Q82: The inflation adjustment line is used to<br>A)describe
Q83: If the economy is in an expansion,
Q84: The aggregate demand curve slopes downward because<br>A)when
Q85: Unlike business investment, housing investment declines when
Q86: The aggregate demand curve and the inflation