Which of the Following Is True

question 8

Multiple Choice

Which of the following is true?

• A) The structural deficit changes over the business cycle.
• B) MPS + MPC = 1.
• C) At equilibrium expenditure, unplanned changes in inventory must be positive.
• D) In the real business cycle model, there is no AD curve.

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Definitions:

Sophisticated

Having a refined knowledge of the world, complex or developed in a way that is not immediately obvious.

Centrated Thinking

A cognitive phenomenon in early childhood, where a child focuses on one aspect of a situation while neglecting others, indicative of preoperational thinking according to Jean Piaget.

Reverse Thinking

An approach to problem-solving where one starts with the desired outcome and works backward to identify the steps necessary to achieve that outcome.

Conservation

Conservation is a concept in cognitive development, demonstrating that a child understands that quantities remain consistent despite changes in shape or arrangement, typically developed during the concrete operational stage.