Assume the Economy Is Initially in Equilibrium with Real GDP

question 11

Multiple Choice

Assume the economy is initially in equilibrium with real GDP equal to potential GDP.Other things equal,if the economy enters a recession and there are automatic stabilizers,the initial decrease in investment expenditure resulting from the recession is ________ what the decrease would be without automatic stabilizers,and the multiplier is ________ what the multiplier would be without automatic stabilizers.

• A) less than; smaller than
• B) greater than; larger than
• C) equal to; smaller than
• D) equal to; greater than

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Definitions:

Anti-Communist

A term used to describe individuals, groups, or policies that oppose communism and its principles.

Zurich Circle

The Zurich Circle refers to a group of intellectuals, artists, and writers based in Zurich, Switzerland, who were influential in modern art and thought movements.

Artistic Convention

Established norms and practices in the arts that guide the creation and interpretation of works within a particular culture or time period.

Paris Peace Conference

The 1919 meeting of Allied victors following the end of World War I to set the peace terms for the defeated Central Powers.