There Is Zero Crowding Out and the Federal Budget Is

Multiple Choice

There is zero crowding out and the federal budget is balanced at the time government purchases are increased.It follows that the __________ curve shifts to the __________,and in the short run both the price level and Real GDP __________.

A) AD; left; rise
B) AD; right; fall
C) AD; right; rise
D) AD; left; fall
E) SRAS; right; rise