Suppose the MPC is 0.8.If the government increases spending by $10M, then GDP will _____ by _____

increase; $10M

increase; $50M

decrease; $50M

none of the above

Suppose the economy is in long-run equilibrium and wealth increases.In the short-run, real GDP will _____ and the unemployment rate will _____ relative to their initial levels.

Question 8 options:

increase; decrease

decrease; decrease

not change; not change

not change; increase

Suppose the economy is in long-run equilibrium and wealth increases. In the short-run, the inflation rate will _____ relative to its initial level.

increase

decrease

not change

Suppose the economy is in long-run equilibrium and wealth increases.In the long-run, real GDP will _____ and the unemployment rate will _____ relative to their initial level.

decrease; decrease

decrease; increase

not change; not change

not change; increase