The Long-Run Effect of Reducing the Government Budget Deficit Would

question 39

Multiple Choice

The long-run effect of reducing the government budget deficit would be

• A) a higher price level and a lower level of output
• B) a lower price level and a lower level of output
• C) a higher price level and a higher level of output
• D) a higher price level with unchanged output
• E) a lower price level with unchanged output

---

Definitions:

Villi

Small finger-like projections that protrude from the epithelial lining of the intestinal wall, increasing surface area for nutrient absorption.

Fingerlike Projections

Extensions from a surface or body that resemble fingers, often used to increase surface area for absorption or sensation in biological systems.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Sodium

A chemical element symbolized by Na, essential in the body for maintaining normal fluid balance and nerve transmission.