If the Economy Is Already at Its Potential Output,then the Spending

question 139

Multiple Choice

If the economy is already at its potential output,then the spending multiplier is

• A)zero in the long run
• B)infinite in the long run
• C)1 in the long run
• D)zero in the short run
• E)1 in the short run

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Definitions:

City of Peace

Often a symbolic term, historically referring to cities like Jerusalem, which hold significant religious and cultural importance to multiple communities.

Vault

An architectural term, a vault is an arched form used to provide a space with a ceiling or roof, constructed in various shapes such as barrel, groin, or rib vaults.

Nasrids

The last Muslim dynasty in Spain, ruling the Emirate of Granada from the 13th to the 15th century until the Reconquista.

Dome of Heaven

An architectural and cosmological concept representing the sky dome or the heavens as a dome-shaped structure, often symbolizing the universe.