An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.Question 45Answera.Trueb.False

An increase in government spending can lead to an increase in aggregate demand (AD).Question 22Answera.Trueb.False

True or False QuestionTrue or false: If the price level is below macroeconomic equilibrium, there will be a surplus of real GDP.True false question.TrueFalse

Changes in GDP can reflect changes in the overall level of economic activity within a country.Question 30Answera.Trueb.False

If the money supply increases, while prices and velocity remain constant, real GDP will:

If the price level increases, but the level of output remains the same from one year to the next,:Multiple choice question.real GDP will increase, but nominal GDP will remain the same.both nominal and real GDP will remain the same.nominal GDP will increase, but real GDP will remain the same.both nominal and real GDP will increase.