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Author Question: Suppose real GDP is 14 trillion and potential real GDP is 14.4 trillion. An increase in government ... (Read 97 times)

fasfsadfdsfa

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on: Jun 29, 2018
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

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


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