Suppose That You Have the Following Information About the Economy

question 109

Multiple Choice

Suppose that you have the following information about the economy, where all figures are in millions of dollars:
Full employment output =$2,000
Consumption = $1,200 Investment = $400
Government spending = $500
Net exports =-$200
Because short-run output is ________ full-employment output, in the long run we would expect the price level to ________.

• A) less than; rise
• B) less than; fall
• C) greater than; rise
• D) greater than; fall
• E) equal to; remain unchanged

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Definitions:

Listening

The act of giving attention to sound or action; actively receiving information through auditory means.

DARN Mnemonic

A technique in motivational interviewing that stands for Desire, Ability, Reasons, and Need, used to help clients express motivation to change.

Paraphrasing

The act of rewording or rephrasing text or speech to achieve clearer understanding, often used in communication and counseling.

Simple Reflection

In counseling, a technique where the counselor mirrors back what the client has said, helping the client feel understood and encouraging deeper exploration of their feelings and thoughts.