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:

Personal Values

Core beliefs or principles that individuals hold, which guide their behavior and decision-making.

Personal Values

Fundamental beliefs or principles that individuals hold as important, guiding their behavior and decision-making processes.

Government Policies

Guidelines or principles adopted by a government to achieve its objectives.

Abstract Good

denotes the idea of goodness or value that is theoretical and not tied to specific, tangible benefits or outcomes.