If the Economy Is Already Producing at Its Potential,_____

question 64

Multiple Choice

If the economy is already producing at its potential,_____.

• A)the spending multiplier equals 1/(1 - MPC)in the long run
• B)the spending multiplier is less than 1/(1 - MPC)in the long run
• C)the spending multiplier is more than 1/(1 - MPC)in the long run
• D)the spending multiplier equals zero in the long run
• E)the aggregate demand curve is horizontal

---

Definitions:

Digital Sampling

The process of taking a portion of a sound recording to use in a new piece of music, often a key technique in digital music production.

Meta Tag

Word inserted into a website’s key-words field to increase the site’s appearance in search engine results.

Trademark

A distinct symbol, motif, or phrase that distinguishes goods or services of a specific origin from those belonging to other entities.

File-Sharing

The practice of distributing or providing access to digital media, such as documents, music, or software, over the internet.