Assuming a long-run aggregate supply curve, a decrease in government spending results in _______ in output and _______ in prices.
A)no change; an increase
B)no change; a decrease
C)a decrease; a decrease
D)an increase; no change

Question

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The Answer of Assuming a long-run aggregate supply curve, a decrease in government spending results in _______ in output and _______ in prices.
A)no change; an increase
B)no change; a decrease
C)a decrease; a decrease
D)an increase; no change

Assuming a Long-Run Aggregate Supply Curve, a Decrease in Government