In the Short-Run Keynesian Model, to Close a Recessionary Gap

question 107

Multiple Choice

In the short-run Keynesian model, to close a recessionary gap of $1 billion dollars government purchases must be:

• A)increased by $1 billion.
• B)decreased by $1 billion.
• C)increased by more than $1 billion.
• D)increased by less than $1 billion.

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Definitions:

Non-prejudiced People

Individuals who do not harbor prejudices, maintaining unbiased attitudes and behaviors towards others based on race, gender, religion, or other social categories.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to the feedback between belief and behavior.

Motivation

The psychological process that gives behavior purpose and direction.

Prejudices

Biased opinions or feelings against an individual or group without sufficient justification.