​ Beginning from Full-Employment Macro Equilibrium, Increase in Government Spending

question 23

Multiple Choice

​ Beginning from full-employment macro equilibrium, increase in government spending will cause real GDP to:

• A) ​increase in the short run.
• B) ​decline in the long run.
• C) ​decline in the short run.
• D) ​ increase in the long run.

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Definitions:

HNP

Herniated Nucleus Pulposus; a condition where the soft center of a spinal disc pushes through a crack in the tougher exterior casing.

Analgesia

A state where pain is reduced or absent, which may be achieved through various medications or techniques.

Asthenia

An abnormal physical weakness or lack of energy; often associated with various medical conditions.

Ataxia

Lack of coordination or unsteady movement, often due to a neurological disorder.