If the government ________ taxes to pay for spending on infrastructure, the result will most likely be a(n) ________ in capital deepening

What is the difference between the short run and the long run when there is full employment and the government engages in deficit spending?

A) Real GDP will increase in the short run but not the long run. B) Real GDP will not increase in either the long run or the short run. C) Real GDP will increase in the long run but not the short run. D) Real GDP will increase in both the short run and the long run.

Over the Fed's history, it has targeted

a. bank reserves. b. the Federal funds rate. c. monetary aggregates. d. inflation. e. all but d.