Question
Because of COVID-19, the Canadian economy is experiencing a recession. The government speeds up the Green Line Extension of C-train, where C-train is the public
Because of COVID-19, the Canadian economy is experiencing a recession. The government speeds up the Green Line Extension of C-train, where C-train is the public transit in Calgary. According to the IS-LM model, which of the following best describes the government's action?
consumption increases, investment increases,and the general price level increases in the short-run equilibrium.
consumption increases, investment increases,and the general price level decreases in the short-run equilibrium.
consumptiondecreases, investment decreases,and the general price level increases in the short-run equilibrium.
consumption decreases, investmentdecreases,and the general price leveldecreasesin the short-run equilibrium.
None of the other answers is correct.
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