If the shifts in AD that will result from policy changes are fully and accurately anticipated, an increase in government purchases or a decrease in taxes would result in which of the following in the short run?
A) a higher level of real output and a higher price level
B) a higher level of real output but no change in the price level
C) a higher price level and a reduced level of real output
D) a higher price level but no change in real output
Correct Answer:
Verified
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Q107: Exhibit 19-1 Q108: If a decrease in the growth rate
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