Assume the AS Curve Is Upward-Sloping

question 21

Multiple Choice

Assume the AS curve is upward-sloping.If the multiplier is 4 and the government increases transfer payments by $10 billion,then real output will increase by

• A)Less than $30 billion.
• B)Exactly $30 billion.
• C)Exactly $40 billion.
• D)Exactly $50 billion.

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Definitions:

Adaptation-level Phenomenon

A psychological principle stating that individuals adjust their expectations based on past experiences, which influences how they perceive new stimuli or situations.

Life Expectancy

The average period that an individual is expected to live, based on statistical averages of age, sex, and other demographic factors.

Religious Involvement

Participation in or commitment to practices, beliefs, or activities associated with a faith or spiritual community.

Self-control

Self-control is the ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.