Starting from Long-Run Equilibrium,a Large Increase in Government Purchases Will

Multiple Choice

Starting from long-run equilibrium,a large increase in government purchases will result in a(n) _________ gap in the short run,and ________ inflation and ________ output in the long run.

A) expansionary;higher;potential
B) expansionary;lower;potential
C) expansionary;higher;higher
D) recessionary;higher;potential
E) recessionary;lower;lower