Suppose, for a Certain Economy, Real and Potential GDP Are

question 94

Multiple Choice

Suppose, for a certain economy, real and potential GDP are initially equal. Then government purchases permanently increase. Compared to the baseline, we would expect to see, in the medium run,

• A)a decrease in consumption and an increase in both net exports and investment.
• B)a decrease in consumption, investment, and net exports.
• C)an increase in consumption, a decrease in net exports, and no change in investment.
• D)an increase in consumption and net exports and a decrease in investment.
• E)an increase in consumption and a decrease in both net exports and investment.

---

Definitions:

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to people of one's own sex.

Percentage

A mathematical term that represents a number or ratio expressed as a fraction of 100.

Women's Movement

A series of campaigns for reforms on issues such as reproductive rights, domestic violence, maternity leave, equal pay, and women's suffrage, aimed at achieving equality and eliminating gender discrimination.

Significant Dissent

Describes a substantial or meaningful disagreement or opposition within a group or organization, often manifesting in debates or protests.