In the Case of an Increase in Government Spending Where

Multiple Choice

In the case of an increase in government spending where the price level varies while the money wage is fixed,output

A) rises and prices fall by more than if the price level was fixed.
B) falls and price rise by more than if the price level was fixed.
C) rises by more and the price level rises by less than if the price level was fixed.
D) and the price level are fixed.
E) rises and prices fall by more than if the price level was fixed