The Government Might Increase Spending to End a Recession Because

question 45

Multiple Choice

The government might increase spending to end a recession because:

• A) allowing short-run aggregate supply to adjust back to the long run can take a long time.
• B) it causes prices to be lower in the new long-run equilibrium.
• C) the economy enjoys a higher level of output in the long run.
• D) None of these explain why the government might increase its spending to end a recession.

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Definitions:

Ambiguous Goals

Objectives that are unclear or can be interpreted in multiple ways, often leading to confusion or conflicting priorities.

Forcing-Oriented

A strategy or approach that emphasizes coercion or the use of power to achieve objectives.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Maturity And Breadth

The depth and comprehensive extent of knowledge or understanding that comes with experience or advanced study, showing sophistication and well-roundedness.