1 answer

# Suppose government spending decreases. Beginning in a long-run equilibrium, what would be the long-run effect on...

###### Question:

Suppose government spending decreases. Beginning in a long-run equilibrium, what would be the long-run effect on the goods and services market?

Group of answer choices

A. GDP Deflator increases, Real GDP decreases

B. GDP Deflator decreases, Real GDP decreases

C. GDP Deflator decreases, no change in Real GDP

D. GDP Deflator increases, no change in Real GDP

An increase in the amount of technology will shift which curve(s)?

Group of answer choices

A. Aggregate demand and short-run aggregate supply

B. Short and long-run aggregate supply

C. Aggregate demand and long-run aggregate supply

D. Long-run aggregate supply only

E. Aggregate demand only

F. Short-run aggregate supply only

## Answers

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