Multiple Choice
Suppose that you have the following information about the economy,where all figures are in millions of dollars:
Full employment output = $2,000
Consumption = $1,200
Investment = $400
Government spending = $500
Net exports = -$200
Because short-run output is ________ full employment output,in the long run we would expect the price level to ________.
A) less than; rise
B) less than; fall
C) greater than; rise
D) greater than; fall
E) equal to; remain unchanged
Correct Answer:

Verified
Correct Answer:
Verified
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