The Long-Run Income Effect (The Effect of Real GDP Changes

question 123

Multiple Choice

The long-run income effect (the effect of real GDP changes on spending) of decreased government purchases is that consumption

• A)is higher.
• B)is the same, investment is higher, and net exports are lower.
• C)and net exports are the same.
• D)and net exports are lower.
• E)is higher, and investment is higher.

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Definitions:

Veil of Ignorance

A theoretical concept that suggests designing society's principles without knowing one's status, to ensure fairness and impartiality in laws and social agreements.

Morality of Principles

A focus on ethical theories that emphasize the importance of adhering to a set of guiding principles or rules when making moral decisions.

Moral Development

The process through which individuals acquire and understand moral concepts, including how to differentiate right from wrong and develop ethical principles over time.

Morality of Reducing Injustice

Ethical considerations involved in actions and policies aimed at decreasing unfairness and inequality in society.