Suppose there has been an increase in investment.As a result,real GDP will ________ in the short run,and ________ in the long run.
A) increase;increase further
B) increase;decrease to its initial value
C) decrease;decrease further
D) decrease;increase to its initial level
Correct Answer:
Verified
Q129: The _ curve has a positive slope
Q131: Potential GDP is also referred to as
A)realized
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Q141: When potential GDP increases,long-run aggregate supply also
Q145: What variables cause the short-run aggregate supply
Q153: The short-run aggregate supply curve is vertical.
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Q159: Explain how each of the following events
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