Explore
Teacher Resources
(opens in a new tab)
Log In
Sign Up
Log In
Sign Up
←
Back to Course Outline
Quiz
· Business Fluctuations
· 10 of 18
Principles of Macroeconomics
Knowledge Check
Question 1 of 3
What happens in the short run when spending increases?
a.
Increased spending doesn’t immediately cause full inflation, so there is short run growth.
b.
Increased spending immediately causes inflation, so there is no growth.
c.
More spending makes prices sticky, so inflation skyrockets in the short run.
d.
More spending makes prices more volatile, so inflation drops and often turns into deflation.
Check Answer
Report a problem