Business, 15.04.2021 16:30 mhuerta71001

What is the long-run effect of a permanent increase in government spending? A. The decline in investment, consumption, and net exports exactly offsets the increase in government spending; therefore, real GDP remains unchanged. B. Investment, consumption, and net exports decline but by less than the increase in government spending; therefore, real GDP increases. C. Investment, consumption, and net exports remain unchanged; therefore, there is no change in real GDP. D. Investment, consumption, and net exports decline but by more than the increase in government spending; therefore, real GDP decreases.

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What is the long-run effect of a permanent increase in government spending? A. The decline in inv...

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