If Short-Run Equilibrium Output Equals 10,000, the Income-Expenditure Multiplier Equals

question 66

Multiple Choice

If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, potential output (Y*) equals 11,000, then government purchases must ________ to eliminate any output gap.

• A)increase by 200
• B)increase by 1,000
• C)increase by 5,000
• D)decrease by 200

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Lifeworld

The world of living experience and subjective interpretations, as distinguished from objective realms of science and social structures.

Ontological Depth

Refers to the complexity and richness of being or existence, often discussed in philosophical contexts regarding the nature of reality.

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A social theory that posits that individuals and society shape each other through a dynamic and reciprocal process of actions and structures.

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