Examlex
A decrease in taxes (when Ricardian equivalence doesn't hold) causes the real interest rate to ________ and output to ________ in the short run,before prices adjust to restore equilibrium.
Government Spending
The total amount of public expenditure by the government on various services and infrastructure, contributing to the nation's economic activity.
Normative
Relating to prescriptive or value-based judgments, indicating what should be rather than what is.
Oil Imports
The purchase of foreign-sourced oil for domestic use, reflecting a country's demand for energy resources not available within its own borders.
Normative Statement
An opinion-based statement that reflects values or judgments and cannot be tested or disproven by observation.
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