Question: Question content area Part 1 The simple multiplier effect shows the resulting change in real GDP due to an increase in government purchases or a
Question content area
Part
The simple multiplier effect shows the resulting change in real GDP due to an increase in government purchases or a decrease in taxes assuming that the price level is
Part
In reality, the SRAS is
horizontal
vertical
downward sloping
upward sloping
Part
As a result, when AD shifts to the right, in reality the change in real GDP will be
greater than
less than
the same as
it would be if the price level were constant.
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