In the Short Run

question 108

Multiple Choice

In the short run

• A) monetary expansion causes the CA to increase and fiscal expansion causes the CA to decrease.
• B) monetary expansion causes the CA to decrease and fiscal expansion causes the CA to decrease.
• C) monetary expansion causes the CA to increase and fiscal expansion causes the CA to increase.
• D) monetary expansion causes the CA to decrease and fiscal expansion causes the CA to increase.
• E) monetary expansion causes the CA to increase and the effects of fiscal expansion are ambiguous.

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Definitions:

Evaluative

Involving value judgments, as opposed to simply being descriptive.

Basic

Constituting an essential foundation or starting point; fundamental characteristics or principles of something.

Pythagoras

An ancient Greek philosopher and mathematician who is credited with significant developments in mathematics, astronomy, and the theory of music.

Numbers

Abstract entities that represent quantities, positions, or values in mathematics, enabling the measuring, labeling, and ordering of objects and ideas.