If There Is Complete Crowding Out,the Change in Real GDP

question 10

Multiple Choice

If there is complete crowding out,the change in Real GDP that results from a given change in autonomous spending will be

• A) zero.
• B) greater than if there was incomplete crowding out.
• C) infinite.
• D) There is not enough information to answer the question.

---

Definitions:

Value Assigned

The process of determining the worth or importance assigned to an item, service, or process, often taking into account factors like cost, utility, and scarcity.

Equity Theory

A theory of motivation suggesting that individuals assess their job satisfaction and motivation based on the perceived fairness of their treatment compared to others.

Extended Lunch Breaks

Longer than normal break periods allocated for lunch, beyond the typical schedule.

Co-Workers

Individuals who work together, often sharing tasks or goals within the same organization.