Starting from Long-Run Equilibrium, a Large Increase in Government Purchases

question 113

Multiple Choice

Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

• A)expansionary; higher; potential
• B)expansionary; higher; higher
• C)recessionary; lower; lower
• D)recessionary; higher; potential

Acknowledge the role of context in influencing communication effectiveness.

Analyze the suitability of communication media for specific business needs.

Understand the ethical considerations in effective communication.

Recognize the importance of audience analysis in communication strategy.

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Definitions:

Labor Force

The total number of people who are currently employed or actively seeking employment within an economy.

OPEC Countries

Nations that are members of the Organization of the Petroleum Exporting Countries, known for coordinating oil production policies.

Oil Price

The cost per barrel of crude oil, influenced by factors like geopolitical events, supply and demand dynamics, and market speculation.

Unanticipated Inflation

Inflation that occurs when businesses and individuals are unable to accurately predict the rate of inflation, leading to potential economic distortions and uncertainties.