If people correctly anticipate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP:
A)in both the short run and the long run.
B)in the short run but not the long run.
C)in the long run but not the short run.
D)in neither the short run nor the long run.

Question

If people correctly anticipate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP:
A)​in both the short run and the long run.
B)​in the short run but not the long run.
C)​in the long run but not the short run.
D)​in neither the short run nor the long run.

Quizplus · Accepted Answer

The Answer of If people correctly anticipate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP:
A)​in both the short run and the long run.
B)​in the short run but not the long run.
C)​in the long run but not the short run.
D)​in neither the short run nor the long run.

If People Correctly Anticipate the Effects of Expansionary Policy, an Increase