Suppose There Has Been an Increase in Government Spending

question 146

Multiple Choice

Suppose there has been an increase in government spending.As a result, real GDP will ________ in the short run, and ________ in the long run.

• A)increase; increase further
• B)increase; decrease to its initial value
• C)decrease; decrease further
• D)decrease; increase to its initial level
• E)decrease; remain at this lower level

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Definitions:

Recognition-Primed Decision Making

A model that describes how people make quick, effective decisions by recognizing patterns and similarities with past experiences.

Mental Simulations

The cognitive process of imagining or visualizing a scenario in one's mind to predict outcomes, plan actions, or solve problems.

Deductive Validity

A characteristic of a deductive argument where if the premises are true, the conclusion must also be true, ensuring the argument's logical soundness.

Trajectory Image

A visual representation that shows the path of movement of an object through space over time.