Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?
a. The aggregate demand curve is relatively flat.
b. The aggregate demand curve is relatively steep.
c. The short-run aggregate supply curve is relatively flat.
d. The aggregate demand curve is vertical.
e. The short-run aggregate supply curve is vertical.
C
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Other things remaining the same, ________ in U.S. real GDP results in ________ in U.S. imports
A) an increase; a decrease followed by no change B) an increase; an increase C) a decrease; an increase D) a decrease; no change E) an increase; a decrease
An increase in investment ________ aggregate demand, the aggregate demand curve shifts ________ and the economy is in the ________ phase of the business cycle
A) increases; leftward; recession B) increases; rightward; recession C) increases; rightward; expansion D) decreases; leftward; recession E) decreases; rightward; expansion