Suppose real GDP is 14 trillion and potential real GDP is 14.4 ...

[fasfsadfdsfa]

Suppose real GDP is 14 trillion and potential real GDP is 14.4 trillion. An increase in government purchases of 400 billion would cause real GDP to ________ potential real GDP (assuming a constant price level).
 
  A) be less than
  B) be more than
  C) equal
  D) There is insufficient information given here to draw a conclusion.

Question 2

The short-run Phillips curve is ________ than the long-run Phillips curve.
 
  A) flatter B) steeper
  C) less stable D) Both B and C are correct.

[laurnthompson]

Answer to Question 1

B

Answer to Question 2

A