A Decrease in Government Purchases Can Close an Expansionary Gap

question 84

True/False

A decrease in government purchases can close an expansionary gap by shifting the aggregate demand curve.

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Definitions:

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in situations or decisions.

Worker

An individual engaged in a specific activity or labor, especially for economic gain.

Credit Card

A card issued by a financial institution that allows the cardholder to borrow funds with which to pay for goods and services with the promise to repay these funds, plus any agreed charges.

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in the future.