The Short-Run Effect of an Increase in Government Purchases Is

Multiple Choice

The short-run effect of an increase in government purchases is

A) a rightward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.
B) a leftward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.
C) a rightward shift of the aggregate demand curve and a downward shift of the inflation adjustment line.
D) a rightward shift of the aggregate demand curve and movement along the inflation adjustment line.
E) a leftward shift of the aggregate demand curve and movement along the inflation adjustment line.