​ 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:

Paternity Suit

A lawsuit brought by an unmarried mother to establish that a certain person is the biological father of her child. DNA testing or a comparable procedure is often used to determine paternity.

Foster Care

A temporary arrangement in which a family is paid by the state to care for a child for a limited period of time, often pending adoption.

Temporary Arrangement

A provisional setup intended to serve a purpose for a limited period before a permanent solution is established.

Best Interests

A principle that guides decisions in the legal system, especially in family and child law, ensuring that the outcomes serve the optimal welfare of the individuals involved.