The short-run effect of an increase in government purchases is
A) a rightward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.
B) a leftward shift of the aggregate demand curve and an upward shift of the inflation adjustment line.
C) a rightward shift of the aggregate demand curve and a downward shift of the inflation adjustment line.
D) a rightward shift of the aggregate demand curve and movement along the inflation adjustment line.
E) a leftward shift of the aggregate demand curve and movement along the inflation adjustment line.
Correct Answer:
Verified
Q1: The long-run effects of an increase in
Q2: Exhibit 25-1 Q4: Which of the following is another term![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents