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Suppose Real GDP Exceeds Potential Real GDP

question 53

Multiple Choice

Suppose real GDP exceeds potential real GDP.If the government decreases its expenditures on goods and services,then real GDP ________ and the price level ________.


Definitions:

Intrusive Thoughts

Unwelcome, often distressing, thoughts or images that suddenly appear in a person's mind without the intention to think them.

Repetitive Behaviors

Actions performed repeatedly in a similar manner, often observed in various psychological disorders but also in everyday activities and rituals.

Anxiety Disorders

A category of mental health disorders characterized by significant fear or anxiety that impacts a person's daily functioning.

Excessive Fear

An overwhelming and often irrational sense of anxiety or dread regarding a specific object, situation, or activity, beyond normal or expected levels.

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