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Amina Mohajir
on Nov 16, 2024

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If the government decreases government expenditures, then in the short run, prices

A) fall and unemployment rises.
B) rise and unemployment falls.
C) and unemployment rise.
D) and unemployment fall.

Government Expenditures

Financial spending by the government which includes spending on goods and services, social welfare, public infrastructure, and defense.

Short Run

A period in economic theory during which at least one input (like capital) is fixed, contrasting with the long run where all factors of production are variable.

Prices

The amount of money expected, required, or given in payment for something.

  • Perceive the effects that fiscal and monetary policy have on inflation, unemployment, and aggregate demand over the short term.
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Isabella HawkinsNov 20, 2024
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