According to the Traditional Keynesian Approach, If the Government Increases

question 3

Multiple Choice

According to the traditional Keynesian approach, if the government increases spending by $5 million and raises current taxes by $5 million at the same time, then

• A)real GDP will increase by $5 million.
• B)real GDP will decrease by $5 million.
• C)real GDP will decrease by more than $5 million.
• D)real GDP will remain the same.

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Definitions:

Nerve Tract

A bundle of nerve fibers (axons) within the central nervous system that connects different parts of the nervous system.

Inflammation

A biological response of body tissues to harmful stimuli, such as pathogens or irritants, characterized by redness, swelling, heat, and pain.

Sensation Loss

Sensation loss, or sensory loss, refers to a decrease or absence of sensation resulting from damage to the nervous system affecting one or several senses, such as touch, taste, or smell.

Pia Mater

The delicate innermost layer of the meninges, the membranes surrounding the brain and spinal cord.