Based on the Conventional View of Fiscal Policy and Potential

question 28

Essay

Based on the conventional view of fiscal policy and potential GDP in the long run,explain what happens to each of the following if the government runs a budget deficit:
a. the supply of loanable funds to the private sector
b. long-term real interest rates
c. the capital stock
d. the investment rate
e. potential GDP

---

Definitions:

Marcia's Categories

A framework for understanding identity development during adolescence, comprising four statuses: identity diffusion, foreclosure, moratorium, and achievement.

Sexual Minority Youth

Refers to young individuals who identify with a sexual orientation that falls outside the heterosexual norm, including but not limited to lesbian, gay, bisexual, and questioning/queer youth.

Lesbians

Women who are romantically and sexually attracted to other women.

Gay Men

Males who are romantically and sexually attracted to other males.