For an Economy Starting at Potential Output, an Increase in Planned

question 63

Multiple Choice

For an economy starting at potential output, an increase in planned investment in the short run results in a(n) :

• A)expansionary output gap.
• B)recessionary output gap.
• C)increase in potential output.
• D)decrease in potential output.

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Definitions:

Discrete Probability Distributions

Probability distributions that deal with discrete random variables, which have countable outcomes.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, showing how much each value in the set deviates from the mean.

Toll Station

A point at which drivers are charged a fee to use a bridge, road, or tunnel.

Standard Deviation

A metric showing the extent of deviation or scatter of data points, highlighting the distance of these points from the central value.