Exhibit 12-1 -Given the Information in Exhibit 12-1, If Government Purchases Increased

question 46

Multiple Choice

Exhibit 12-1

-Given the information in Exhibit 12-1, if government purchases increased to $100, equilibrium real GDP demanded would

• A)decrease by $100
• B)decrease by $300
• C)decrease by $500
• D)stay the same
• E)increase by $100

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Definitions:

Right Livelihood

A concept from Buddhist teaching that suggests choosing a profession that does not harm others and is ethically positive, contributing to the well-being of all.

Mental Alertness

The state of being attentive and able to think clearly and quickly, often required for learning, problem-solving, and decision-making.

Emotional Stability

The ability to maintain calm and composed, managing emotions effectively, especially in stressful situations.

Right Livelihood

A concept from Buddhist teaching that emphasizes ethical and morally upright work as a foundational element of a meaningful life.