For an Economy Starting at Potential Output,a Decrease in Autonomous

question 106

Multiple Choice

For an economy starting at potential output,a decrease in autonomous planned aggregate expenditure in the short run results in a(n)

• A) expansionary output gap.
• B) recessionary output gap.
• C) increase in potential output.
• D) decrease in potential output.
• E) decrease in cyclical unemployment.

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Definitions:

Autistic

Related to or affected by autism, a developmental disorder characterized by challenges with social interaction, communication, and repetitive behaviors or restricted interests.

Bilingual

Fluent in two languages.

Long-term Memory

The aspect of memory where information is stored for an extended period, sometimes indefinitely.

Sensory

Relating to or involving the senses or sensation, such as sight, hearing, smell, taste, and touch.