Starting from Long-Run Equilibrium,a Large Increase in Government Purchases Will

question 82

Multiple Choice

Starting from long-run equilibrium,a large increase in government purchases will result in a(n) _________ gap in the short run,and ________ inflation and ________ output in the long run.

• A) expansionary;higher;potential
• B) expansionary;lower;potential
• C) expansionary;higher;higher
• D) recessionary;higher;potential
• E) recessionary;lower;lower

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Definitions:

Distrust

The feeling of suspicion or doubt about the reliability or trustworthiness of someone or something.

Paranoid Personality Disorder

A mental disorder characterized by pervasive distrust and suspicion of others' motives.

Cognitive-Behavioral Therapy

A therapeutic method designed to increase happiness and solve problems by reshaping unhealthy behaviors, emotions, and thoughts.

Schizoid Personality Disorder

A personality disorder characterized by a long-term pattern of detachment from social relationships and a restricted range of emotional expression.