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

---

Definitions:

AUG Codon

The mRNA codon that signals the start of protein synthesis, typically coding for the amino acid methionine in eukaryotes and a modified methionine in prokaryotes.

Translation

The process by which the sequence of bases in mRNA is used to direct the sequential addition of amino acids, building polypeptide chains in protein synthesis.

Initiated

Refers to the beginning or activation of a process, such as the start of a chemical reaction or the initiation of protein synthesis.

Aminoacyl-tRNA

A complex of transfer RNA (tRNA) and an amino acid, essential for the translation phase of protein synthesis in cells.