If the Shifts in AD That Will Result from Policy

question 13

Multiple Choice

If the shifts in AD that will result from policy changes are fully and accurately anticipated, an increase in government purchases or a decrease in taxes would result in which of the following in the short run?

• A)​a higher level of real output and a higher price level
• B)​a higher level of real output but no change in the price level
• C)​a higher price level and a reduced level of real output
• D)​a higher price level but no change in real output

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Definitions:

Cognitive Functioning

The level at which the brain is able to manage and use information, including memory, awareness, reasoning, and decision-making skills.

Referral

The process of directing someone to another professional or service for additional expertise, assistance, or treatment.

Test Manual

A comprehensive guide that accompanies a test, providing instructions for administration, scoring, and interpretation.

Culturally Appropriate

Refers to practices, interventions, or assessments that are sensitive to and respectful of the cultural backgrounds and values of individuals or groups.