In the Short-Run Keynesian Model, to Close a Recessionary Gap

question 107

Multiple Choice

In the short-run Keynesian model, to close a recessionary gap of $1 billion dollars government purchases must be:

• A)increased by $1 billion.
• B)decreased by $1 billion.
• C)increased by more than $1 billion.
• D)increased by less than $1 billion.

---

Definitions:

Personal Experience

An individual's direct encounter or involvement in events, shaping their perception, learning, and overall understanding.

Sensory Register

The initial storage of memory for a very brief time after an event.

Initial Impression

The first and immediate perception or judgment formed about someone or something.

Working Memory

Information being actively processed by rehearsal systems.