If Government Purchases Decrease, in the Short Run

question 73

Multiple Choice

If government purchases decrease, in the short run

• A)consumption will increase as income increases.
• B)consumption, investment, and net exports will increase as income increases.
• C)consumption and investment will increase as income increases.
• D)consumption will fall and net exports will increase as income falls.
• E)consumption will increase, and real GDP will remain at potential GDP.

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Definitions:

High Energy Level

A personal attribute characterized by an abundant amount of physical and mental vigor, often deemed necessary for entrepreneurial success.

Sense of Urgency

A perception or feeling that immediate action is necessary, often to capitalize on an opportunity or avoid a threat.

Quest for Achievement

The drive or ambition to accomplish goals, success, or recognition in one's activities or endeavors.

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The outcomes or conclusions derived from actions, experiments, or processes, often used to determine the effectiveness or success of an endeavor.