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

question 27

Multiple Choice

Starting from long-run equilibrium,a large decrease 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;potential

---

Definitions:

Respiratory Diseases

A group of illnesses affecting the lungs and other parts of the respiratory system, such as asthma, pneumonia, and tuberculosis.

Adult Men

Refers to male individuals who have reached the age of maturity, often legally recognized at 18 years of age or older.

Quit Smoking

The process of discontinuing tobacco smoking, which can significantly reduce the risk of developing various health issues.

Life Expectancy

The average period that a person may expect to live, often calculated from birth or a specific age, based on statistical averages.