When the Government Closes an Expansionary Gap with a Change

question 148

Multiple Choice

When the government closes an expansionary gap with a change in government spending,the _____ in government spending leads to _____.

• A)decrease;a decrease in both real GDP and the price level
• B)decrease;a decrease in real GDP and an increase in the price level
• C)decrease;an increase in both real GDP and the price level
• D)decrease;an increase in real GDP and a decrease in the price level
• E)increase;a decrease in both real GDP and the price level

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Definitions:

False Alarms

In signal detection theory, instances when a non-present signal is mistakenly detected or reported as present.

Correct Reports

Accurate accounts or narrations of events or data, which have been verified for truthfulness and accuracy.

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the presence of a high concentration of cones.

Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision and function best in relatively bright light.