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

question 173

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 long run,

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

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Definitions:

Irrational Beliefs

Unrealistic, distorted, or erroneous beliefs that can contribute to emotional distress and behavior problems.

Activating Event

An incident in the environment or a situation that triggers a person's initial emotional or behavioral response.

Sexual Diversity

Refers to the wide range of sexual orientations and identities that exist beyond the traditional binary understanding of sexuality.

Sexual Orientation

An individual's pattern of emotional, romantic, or sexual attraction to others, categorized by the gender relationship between the person and the people they are attracted to.