An increase in aggregate demand, such as that due to an increase in government purchases, increases:
a. prices in the short run and output in the long.
b. output in the short run and prices in the long run.
c. both output and prices in the long run.
d. output in the long run.
Ans: b. output in the short run and prices in the long run.
Economics
You might also like to view...
The optimal sharing group for national defense is the size of a nation
a. True b. False
Economics
In the U.S., the ________ and the ________ prohibit firms from explicitly agreeing to take actions that reduce competition
A) Department of Justice Act; Federal Trade Commission Act B) Sherman Antitrust Act; Federal Trade Commission Act C) Per Se Act; Sherman Antitrust Act D) Pareto Act; Anti-Cartel Act
Economics