Suppose the Economy Is at an Equilibrium on the LRAS

question 11

Multiple Choice

Suppose the economy is at an equilibrium on the LRAS curve and the government decreases spending.In the short run one would expect

• A)output and prices to decrease.
• B)output to remain constant and prices to increase.
• C)output to increase and prices to remain constant.
• D)output and prices to remain constant.

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Definitions:

Projective Tests

Psychological assessment tools where individuals reveal their unconscious feelings and thoughts through responses to ambiguous stimuli.

Personality Assessments

Tools or techniques designed to evaluate human personality traits, behaviors, and characteristics.

Internal Locus of Control

The belief that one's own actions and behaviors are primarily responsible for the outcomes and events in their life.

External Locus

A belief system where individuals perceive their successes or failures as being influenced by external forces or events beyond their control.