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What effect would an increase in government spending have on equilibrium​ output and price level in the short run?

A

Equilibrium output would increase and the price level would decrease.

B

Equilibrium output would increase and the price level would remain unchanged.

C

Equilibrium output would decrease and the price level would decrease.

D

Equilibrium output would increase and the price level would increase.

E

Equilibrium output would​ decrease and the price level would increase.

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