In the Long-Run ISLM Model and with Everything Else Held

question 80

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of an expansionary fiscal policy is to ________ real output and ________ the interest rate.

• A)increase;increase
• B)not change;not change
• C)increase;not change
• D)not change;increase

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Definitions:

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Shaping Personality

The process through which experiences, social interactions, and internal motivations contribute to the development of an individual’s character and behavioral patterns.

Race

A social construct used to categorize humans into large and distinct populations based on various factors including ancestry, physical appearance, and cultural history.

Gender

Socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for men, women, and other gender identities.