The Model Predicts That a Temporary Decrease in Government Purchases

question 31

Multiple Choice

The model predicts that a temporary decrease in government purchases causes:

• A)an increase in consumption.
• B)a reduction in real GDP.
• C)an increase in gross investment.
• D)all of the above.

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Definitions:

Expanding

Increasing in size, volume, quantity, or scope; extending or spreading out from a center or in all directions.

Labeling

The act of identifying or characterizing someone or something with a descriptor or name, often related to social stigma or categories.

Williams Syndrome

A rare genetic condition characterized by mild to moderate intellectual disability or learning difficulties, unique personality characteristics, distinctive facial features, and heart and blood vessel (cardiovascular) problems.

Symptoms

Observable signs or manifestations of a disease, disorder, or condition that are often reported by the patient and can be used for diagnosis.