For an Economy Starting at Potential Output, an Increase in Autonomous

question 93

Multiple Choice

For an economy starting at potential output, an increase in autonomous expenditure in the short run results in a(n) :

• A)expansionary output gap.
• B)recessionary output gap.
• C)increase in potential output.
• D)decrease in potential output.

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Definitions:

Confounding Variable

is an external factor in a research study that may affect the outcome of the experiment, leading to inaccurate conclusions if not controlled.

Intelligence

The ability to acquire, understand, and use knowledge, as well as to engage in abstract thinking and problem-solving.

Recall Events

The process of retrieving information about past events or experiences from one’s memory.

Confounding Variables

Factors other than the independent variable(s) that are unequal across groups.