If the Economy Is Already at Its Potential Output,then the Spending

question 137

Multiple Choice

If the economy is already at its potential output,then the spending multiplier is:

• A)zero in the long run.
• B)infinite in the long run.
• C)equal to 1 in the long run.
• D)zero in the short run.
• E)equal to 1 in the short run.

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Definitions:

Quantity

The amount or number of a material or immaterial thing not requiring a unit of measurement.

Quality

The degree of excellence or superiority of something, often measured against other similar things.

Open Sentence

In predicate logic, a statement with a free variable.

Variable

1. In symbolic logic, a symbol that stands for some, but any, unnamed individual thing; 2. In statistics, a trait regarded as a generic attribute that can exist in different degrees (values).