Multiple Choice
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following is most likely to occur?
A) The price level and real GDP will both rise.
B) The price level will not change, but real GDP will increase.
C) The price level will rise, but real GDP will not change.
D) Both the price level and real GDP will not change.
Correct Answer:
Verified
Correct Answer:
Verified
Q58: A cut in government spending, a decrease
Q59: Exhibit 10-7 Aggregate supply and demand curves<br><img
Q60: Exhibit 10-8 Aggregate demand and supply<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"
Q61: The pre-Keynesian or classical economic theory viewed
Q62: The aggregate supply curve will shift to
Q64: Which of the following is true ,
Q65: Exhibit 10-4 Aggregate supply and demand curves<br><img
Q66: The full employment level of real GDP
Q67: Which of the following will not shift
Q68: Other factors held constant, a decrease in