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:

Foreign Assignments

Work tasks or roles assigned to employees outside their home country, often for an extended period.

Direct Foreign Investment

This refers to the investment by a company or individual in one country in business interests located in another country, often by buying a company in the target country or by expanding operations of an existing business in that country.

Internationalization process

The strategy through which a business expands its operations and presence into international markets.

Operations VP

A high-level executive who oversees the day-to-day operations and ensures they align with organizational goals.