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
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