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If Policy Makers Want to Decrease Real GDP by $100

question 302

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If policy makers want to decrease real GDP by $100 billion and the marginal propensity to consume is 0.6, they should decrease government purchases of goods and services by $40 billion.


Definitions:

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event.

Traumatic Incident

An event or situation that causes psychological trauma, potentially resulting in lasting emotional distress and mental health disorders.

PTSD

Post-Traumatic Stress Disorder; a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Exposure And Response Prevention

A cognitive-behavioral therapy technique used particularly for OCD, where patients are exposed to their fear triggers and taught to refrain from their compulsive responses.

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