In the Basic Keynesian Model, a Decrease in Government Purchases

question 119

Multiple Choice

In the basic Keynesian model, a decrease in government purchases:

• A)reduces short-run equilibrium output.
• B)increases short-run equilibrium output.
• C)reduces potential output.
• D)increases potential output.

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Definitions:

Reward System

A mechanism designed by organizations to recognize and reward the contributions and achievements of employees, aiming to motivate and retain talent.

Interactions

The reciprocal action or influence between two or more entities, objects, or individuals, often resulting in a change or response.

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Unofficial or non-structured forms of recognition and rewards given in a workplace, such as verbal praise, more autonomy, or flexible hours.

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