In a Large Country, the Effect of a Given Change

question 9

Multiple Choice

In a large country, the effect of a given change in government spending:

• A) on output and the trade balance is ambiguous.
• B) on output is large and the effect on the trade balance is small.
• C) on output is small and the effect on the trade balance is large.
• D) on output is large and the effect on the trade balance is large.
• E) on output is small and the effect on the trade balance is small.

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Definitions:

Out of Round

A condition where a component, typically a wheel or drum, does not have a perfectly circular shape, affecting performance.

Brake Warning Light

An indicator light on a vehicle's dashboard that illuminates to warn the driver of potential issues with the braking system.

Shoe Linings

The material attached to the brake shoe that comes into contact with the brake drum or rotor to create the friction needed for stopping.

Master Cylinder

The part of a hydraulic brake system that receives input force through a pushrod when the driver presses on the brake pedal. The pistons inside the master cylinder move forward, pressurizing fluid in the brake lines, which connect to the output pistons at the wheel brakes. Hydraulic clutch systems use a single piston master cylinder to activate the slave cylinder.