In the Short-Run Macro Model,an Increase in Government Spending

question 108

Multiple Choice

In the short-run macro model,an increase in government spending

• A) may reduce real GDP
• B) partially crowds out private investment spending
• C) usually crowds out exports
• D) usually crowds out spending on services
• E) requires an increase in taxes.

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Definitions:

Society

A group of individuals living together in more or less ordered communities, sharing various customs, laws, and organizations that define their relationships and collective functioning.

Norms

Shared expectations and rules that guide behavior within a group or society.

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A professional engaged in research within the clinical domain aimed at improving the understanding, prevention, and treatment of psychological disorders.

Abnormality

A deviation from the normal or average, often referring to a difference in psychological, physiological, or anatomical structure or function not typical for the human body.