As Long as the Level of Output ________ the Natural

question 38

Multiple Choice

As long as the level of output ________ the natural rate level, the price level will continue to ________, shifting the LM curve to the ________, until finally output is back at the natural rate level.

• A)exceeds; rise; right
• B)exceeds; rise; left
• C)remains below; fall; left
• D)remains below; rise; right

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Definitions:

Pork-barrel Legislation

Refers to the allocation of government spending for localized projects secured primarily to bring money to a representative's district, often seen as a way to gain votes.

General Taxpayer

Refers to the broad category of individuals and businesses that are subject to tax obligations.

Local Interests

The concerns, priorities, and objectives that are particularly relevant or beneficial to a specific community or geographical area.

Social Benefits

The positive impacts on society and individuals generated by public services and goods, including education and healthcare.