Absorption Refers to

question 20

Multiple Choice

Absorption refers to

• A) the quantity of imports that is absorbed into the domestic economy.
• B) the amount of government spending that is absorbed into the domestic economy.
• C) the amount of transfer payments from the federal government that is absorbed into the domestic economy.
• D) the quantity of aggregate output that is absorbed into the domestic economy.
• E) the amount of current period income that is used to purchase domestic aggregate output.

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Definitions:

Dialectical Thinking

A method of thought involving the exploration and integration of contradictory perspectives or ideas.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, characterized by skepticism and logical reasoning.

Algorithm

A step-by-step procedure or formula for solving a problem.

Heuristic

A mental shortcut that allows people to solve problems and make judgments quickly and efficiently.