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A Decrease in Government Spending Will Result in a Decrease

question 11

True/False

A decrease in government spending will result in a decrease in the price level and a decrease in real GDP in the long run.


Definitions:

Equals

Signifies mathematical equality; used to denote that two values are the same.

Product

The result obtained from multiplying two or more numbers together.

Subtract

A mathematical operation that involves taking one number away from another to find the difference.

Whole Number

A number without fractions or decimals; an integer that can be positive, negative, or zero.

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