Now consider an economy in which the government lowers its spending. In the long run, the result would be in real output. in the price level and O no change, a decrease O an increase, an increase O a decrease; a decrease O None of the listed options is correct. O a decrease, no change

Now consider an economy in which the government lowers its spending. In the long run, the result would be in real output. in the price level and O no change, a decrease O an increase, an increase O a decrease; a decrease O None of the listed options is correct. O a decrease, no change

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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Question

Now consider an economy in which the government lowers its spending. In the long run, the result
would be
in real output.
in the price level and
O no change, a decrease
O an increase, an increase
O a decrease; a decrease
O None of the listed options is correct.
O a decrease, no change

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