A $200 Increase in Government Purchases Has a Greater Effect

question 35

True/False

A $200 increase in government purchases has a greater effect on the equilibrium level of real GDP than a $200 decrease in autonomous net taxes would.

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Definitions:

Predicting

The action or process of making forecasts about future events or outcomes based on current or historical data.

Weak Form

The hypothesis that past stock prices and trading volume do not affect future stock prices, suggesting that technical analysis cannot predict future movements.

Efficient-Market Hypothesis

The theory that all available information is already reflected in stock prices, suggesting that it is impossible to consistently achieve higher returns than the overall market through expert stock selection or market timing.

Technical Analysis

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume, to predict future price movements.