In the short run, an increase in the price level: a. increases ...

[SGallaher96]

In the short run, an increase in the price level:
 a. increases output prices relative to input prices.
  b. increases the profit margins of many producers.
  c. increases RGDP supplied.
 d. all of the above

Question 2

Suppose the multiplier effect for Japan is 0.8 for any 1 billion change in U.S. government purchases. Therefore, Japanese real GDP will rise by 8 billion when U.S. government spending rises by 10 billion.
 a. True
  b. False
  Indicate whether the statement is true or false

[C.mcnichol98]

Answer to Question 1

d

Answer to Question 2

True

[SGallaher96]

Thank you

[C.mcnichol98]

Happy to help you