If There Is a Dollar-For-Dollar Direct Expenditure Offset, Then

question 57

Multiple Choice

If there is a dollar-for-dollar direct expenditure offset, then

• A) increases in aggregate demand will also increase long-run aggregate supply.
• B) increases in government spending will not increase aggregate demand.
• C) increases in aggregate demand will increase the price level, but leave real output unchanged.
• D) increases in aggregate demand will increase real output, but leave the price level unchanged.

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Definitions:

Gate Control Theory

A theory that suggests the spinal cord contains a neurological "gate" that controls the transmission of pain signals to the brain.

Chronic Pain

Persistent or recurring pain that lasts longer than the typical recovery period or associated with chronic health conditions.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, transmitting neural signals between the brain and the rest of the body.

Neuromatrix Theory

A theory suggesting that pain is a multidimensional experience produced by characteristic "neurosignature" patterns of nerve impulses generated by a widespread network of neurons in the brain.