A Decrease in Government Purchases Will Lead to

Multiple Choice

A decrease in government purchases will lead to

A) a lower output and price level in the short run but a higher output and price level in the long run.
B) a lower output and price level in the short run but the same output and price level in the long run.
C) a lower output and price level in the short run but a higher output and lower price level in the long run.
D) a lower output and price level in the short run but the same output and lower price level in the long run.