In a Keynesian Model,a Temporary Increase in Government Purchases Would

question 71

Multiple Choice

In a Keynesian model,a temporary increase in government purchases would cause output to ________ and the domestic real interest rate to ________,in the short run.

• A)remain unchanged; increase
• B)remain unchanged; decrease
• C)increase; increase
• D)increase; decrease

---

Definitions:

Common Goal

An objective or target shared by a group, which guides collective efforts.

Productive Forgetting

The beneficial aspect of forgetting that allows individuals to discard irrelevant information to enhance learning and decision-making efficiency.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, rather than internal factors like personal satisfaction or enjoyment of the task itself.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.