Economics Readings Site By Colin Ong

This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 10

clipped from www.bized.co.uk
In the classical model, given an initial aggregate equilibrium at full employment, the long run effect of an increase in government spending is


(Select one answer)






(a) * an increase in the price level

(b) * an upward shift of the aggregate demand curve

(c) * a constant level of output

(d) * all of the above
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