Suppose That in Year 2 There Was a Higher Federal

question 40

Multiple Choice

Suppose that in Year 2 there was a higher federal budget deficit than in Year 1. This could be explained by
In Year 2.

• A) lower real interest rates
• B) higher real GDP with fiscal policy constant)
• C) lower real GDP with fiscal policy constant)
• D) lower government expenditure with real GDP constant)
• E) a lower primary budget surplus

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Definitions:

Shock Absorber

A mechanical device designed to absorb and dampen shock impulses in vehicles and machinery, contributing to smoother movement.

CNS

The central nervous system, consisting of the brain and spinal cord, which processes and sends out nerve signals.

Somatic Nervous System

A section of the peripheral nervous system responsible for managing the intentional movement of the body by regulating skeletal muscles.

Eyeblink

A rapid closing and opening of the eyelid, which serves as a protective reflex to remove irritants from the surface of the eye or shield it from bright lights or approaching objects.