If Government Spending Rises More Than Anticipated, Then Equilibrium Output

question 69

Multiple Choice

If government spending rises more than anticipated, then equilibrium output should _____ and the equilibrium price level should _____ in the short run.

• A) rise, rise
• B) rise, fall
• C) fall, rise
• D) fall, fall

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Definitions:

Hypermarkets

Large retail stores that combine a supermarket and a department store, offering a wide range of food and non-food items under one roof.

Evolutionary Psychology

A theoretical approach in psychology that examines the ways in which human psychological traits and behaviors are shaped by evolutionary forces.

Evolutionary Theory

A scientific theory which explains how organisms change over generations through the processes of natural selection and genetic variation.

Objections

Expressions or statements of disagreement or refusal, often used in contexts of debate, legal proceedings, or negating a proposal.