An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.Question 45Answera.Trueb.False

The level of real GDP in the long run is calledQuestion 8Answera.low-capacity GDP.b.potential GDP.c.frictional GDP.d.short-run GDP.

If long run aggregate supply curve decreases, real gross domestic product (GDP) and the price level will change in which of the following ways?Elimination Tool

An increase in government spending can lead to an increase in aggregate demand (AD).Question 22Answera.Trueb.False

The aggregate demand curve slopes downward because the relationship between the price level and real GDP is:Multiple choice question.positivedirectinverse

If the real GDP increases by 4%, the Price level decreases by 1%, and velocity increases by 6%, then, which is the change in the money supply is _____percent