Which of the following is true?

Question 10 options:

a)

In the short-run, changes in aggregate demand could cause actual GDP to differ from potential GDP

b)

In the long-run, increases in labour supply, capital, and/or productivity will increase potential GDP

c)

In the short-run, changes in Government spending will cause changes in actual GDP

d)

In the short-run, increases in Government spending could cause an inflationary gap if not offset by contractionary monetary policy

e)

All of the above are true