In the Keynesian Model in the Short Run,a Decrease in Government

question 28

Multiple Choice

In the Keynesian model in the short run,a decrease in government purchases causes output to ________ and the real interest rate to ________.

• A)fall; rise
• B)fall; fall
• C)rise; rise
• D)rise; fall

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Definitions:

Formal Means

Formal means involve structured, official, and typically documented methods or procedures used to accomplish tasks or maintain order in organizations.

Pay

Compensation or wages received by an employee in exchange for their labor or services provided to an employer.

Promotions

The process of elevating an employee to a higher position or rank within an organization, often accompanied by increased responsibilities and pay.

Negative Stimulus

Any factor or event that is perceived as unfavorable or unpleasant, which can lead to a response aimed at avoiding or diminishing it.