In the Basic Keynesian Model,a Decrease in Autonomous Spending

question 159

Multiple Choice

In the basic Keynesian model,a decrease in autonomous spending

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

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Definitions:

Obsession

A persistent, intrusive thought, idea, or image that causes significant stress or anxiety.

Fugue

A psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

Shameful Thought

An uncomfortable feeling of embarrassment or guilt that arises from actions, thoughts, or circumstances perceived as dishonorable or improper.

Obsessions

Persistent, unwanted thoughts, images, or urges that cause distress or anxiety.