If the government raises government expenditures,then in the short run prices

Question

Quizplus · Accepted Answer

When the government raises government expenditures, it leads to an increase in aggregate demand. This increased demand will cause prices to rise in the short run due to the increased demand for goods and services. Additionally, the increased government expenditure can create job opportunities, leading to a decrease in unemployment. Thus, prices rise and unemployment falls simultaneously.

If the Government Raises Government Expenditures,then in the Short Run