When All Else Is Equal, If an Increase in Government

Multiple Choice

When all else is equal, if an increase in government spending leads to an increase in equilibrium output and no change in equilibrium price, then we can conclude that the economy must be operating on the:

A) classical range of the short-run aggregate supply curve.
B) Keynesian range of the short-run aggregate supply curve.
C) upward-sloping range of the short-run aggregate supply curve.
D) long-run aggregate supply curve.