For an Economy Starting at Potential Output,an Increase in Planned

question 44

Multiple Choice

For an economy starting at potential output,an increase in planned investment,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) increase in cyclical unemployment.

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Definitions:

Persistently Goal-Directed

Characterized by consistent and prolonged effort towards achieving specific objectives.

Selectivity of Routes

The preference or exclusivity in the choice of paths or methods to achieve a certain goal or outcome.

Cognitive Processes

The mental actions or operations that support learning, understanding, and decision-making.

Precise Predictions

Specific forecasts made about the outcomes of scientific experiments or observations.