In a Self-Correcting Economy,an Increase in Government Expenditures in the Long-Run

Multiple Choice

In a self-correcting economy,an increase in government expenditures in the long-run will

A) raise equilibrium real GDP and raise the price level.
B) lower the price level but leave real GDP unaffected.
C) raise nominal GDP but leave real GDP unaffected.
D) leave the price level and real GDP unaffected.