If Short-Run Equilibrium Output Equals 10,000, the Income-Expenditure Multiplier Equals

question 109

Multiple Choice

If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 10, and potential output (Y*) equals 9,000, then government purchases must ________ to eliminate any output gap.

• A)increase by 100
• B)decrease by 100
• C)increase by 1,000
• D)decrease by 1,000

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Emic

A perspective in anthropology and sociocultural research that focuses on understanding cultures, beliefs, and behaviors from within the cultural context itself.

Etic

An outsider's perspective on another culture, often used in anthropology to analyze cultures objectively.

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A concept in transcultural nursing that suggests there are common, universal features of care that are present across different cultures and societies.

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