When an Increase in Government Purchases Increases Aggregate Demand, What

question 87

Multiple Choice

When an increase in government purchases increases aggregate demand, what happens to the Solow growth curve in the long run?

• A) It has a lower GDP growth rate than before the government purchases.
• B) It has the same GDP growth rate as before the government purchases.
• C) It has a higher GDP growth rate than it had before the government purchases.
• D) It has a GDP growth rate that continues to grow.

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Definitions:

Color Receptors

Specialized types of photoreceptor cells in the retina of the eye that are responsible for detecting color.

Wavelength

The distance between successive peaks (or troughs) of a wave, commonly used in discussions of light, sound, and other types of waves.

Stimulate

To encourage something to grow, develop, or become active.

Young-Helmholtz Trichromatic Model

A theory of color vision proposing that the human eye has three types of receptors with different sensitivities to different light wavelengths.