Suppose Current Government Spending Decreases and That Individuals Expect Future

question 20

Multiple Choice

Suppose current government spending decreases and that individuals expect future government spending to decrease.Given this information,in which of the following cases will output in the current period be more likely to increase?

• A)Individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates.
• B)Individuals consider only the medium run effects of changes in future macro variables when forming expectations of future output and future interest rates.
• C)Individuals consider only the long run effects of changes in future macro variables when forming expectations of future output and future interest rates.
• D)The output effects will be the same in B and C.

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Citizens

Members of a state or nation who are legally recognized as belonging to that country and have specific rights, duties, and responsibilities.

Ideological Analysis

The examination of underlying beliefs, values, and biases in cultural texts or practices, exploring how they shape societal norms and perspectives.

Hegemony

Hegemony describes the dominance of one group over another, often in a cultural, political, or economic context, whereby the dominant group's views are perceived as the normative standard.

Social Class

A division of a society based on social and economic status, impacting individuals' access to resources and opportunities.