Two Identical Countries,Country a and Country B,can Each Be Described

question 96

Essay

Two identical countries,Country A and Country B,can each be described by a Keynesian-cross model.The MPC is .9 in each country.Country A decides to increase spending by $2 billion,while Country B decides to cut taxes by $2 billion.In which country will the new equilibrium level of income be greater?

---

Definitions:

Disturbed Cognition

Impairments or abnormalities in thought processes, such as memory, attention, perception, and problem-solving, often indicative of a neurological or psychological condition.

Anorexia

A situation where one has significantly reduced body weight, experiences intense terror at the thought of weight gain, and harbors an incorrect perception regarding their bodily dimensions or shape.

Anorexia

Sufferers exhibit an unnaturally low weight, a profound terror of gaining any pounds, and a misjudged sense of their body’s weight or figure.

Cognitive-Behavioral Therapy

A form of psychotherapy that focuses on identifying and restructuring negative thought patterns to alter behavior and emotional state.