Assuming prices are sticky in the short run, a decrease in useful government spending will cause inflation to __________ in the short run and growth to ___________ in the short run. remain unchanged/decrease increase/increase decrease/increase decrease/decrease

Assuming prices are sticky in the short run, a decrease in useful government spending will cause inflation to in the short run and growth to _ in the short run. remain unchanged/decrease increase/increase decrease/increase decrease/decrease

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 14SQ

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Question

Assuming prices are sticky in the short run, a decrease in useful government spending will cause inflation to __________ in the short run and growth to ___________ in the short run.

		remain unchanged/decrease
		increase/increase
		decrease/increase
		decrease/decrease
		remain unchanged/remain unchanged

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