In the long-run, an increase in the budget deficit and an expansionary monetary policy would:
A) increase the price level only.
B) increase both the price level and real income.
C) increase real income only.
D) none of the above.
A
Economics
You might also like to view...
The demand for labor is given by L(w) = 1000 - .5w, where w is the minimum wage. Find the level of w that maximizes the total wage payment, wL(w). What is the wage-elasticity of labor demand at the maximizing minimum wage?
What will be an ideal response?
Economics
In the 1960s, U.S. economy experienced
A. a substantial decline in real GDP but limited inflation. B. a substantial decline in real GDP coupled with significant inflation. C. substantial real GDP growth coupled with significant inflation. D. substantial real GDP growth with limited inflation.
Economics