In the Short-Run Keynesian Model, to Close a Recessionary Gap

question 107

Multiple Choice

In the short-run Keynesian model, to close a recessionary gap of $1 billion dollars government purchases must be:

• A)increased by $1 billion.
• B)decreased by $1 billion.
• C)increased by more than $1 billion.
• D)increased by less than $1 billion.

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Definitions:

Lonely

Experiencing a feeling of sadness or isolation because one has no friends or company.

Reward Model of Liking

A psychological theory suggesting that positive responses and reinforcements from others can lead to preferences and liking for certain stimuli or individuals.

Positive Stimuli

Items or events that evoke a favorable psychological response, often associated with pleasure, happiness, or motivation.

Dislike

A feeling of aversion or lack of positive sentiment toward something or someone.