An Increase in Government Spending Will

question 44

Multiple Choice

An increase in government spending will

• A)increase real GDP in the short run and the long run.
• B)increase real GDP in the short run.
• C)increase the GDP to debt ratio.
• D)have no effect on real GDP because taxes will increase.
• E)increase real GDP in the short run and potential GDP in the long run.

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Definitions:

Achievement Motive

The drive or desire to accomplish goals or meet high standards of performance.

Overcome Obstacles

The act of successfully dealing with or gaining control over difficulties that impede progress.

Curiosity

A strong desire to know or learn something, driving exploration and learning.

Aggression

Aggression is a type of behavior characterized by the intention to harm or injure another person, oneself, or objects either physically or verbally.