Suppose the Economy Is in Long-Run Equilibrium

question 180

Multiple Choice

Suppose the economy is in long-run equilibrium. If the federal government cuts government Jspending, which of the following is likely to result?

• A) an increase in real GDP and an increase in the price level
• B) an increase in unemployment and an increase in the price level
• C) a decrease in unemployment and a decrease in the price level
• D) a decrease in the price level and an increase in unemployment

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Definitions:

Involuntary Admissions

The process of admitting individuals to a psychiatric facility without their consent, typically when they are deemed a danger to themselves or others.

Psychiatric Facilities

Institutions that provide treatment and care for people with mental disorders, including hospitals, clinics, and residential treatment centers.

Insanity

Legal term denoting a state of mental incapacitation during the time a crime was committed.

Court-Appointed Lawyer

An attorney who is provided by the court to represent a defendant who cannot afford to hire a private lawyer.