Suppose the Economy Is Initially Experiencing a Recessionary Gap

question 105

Multiple Choice

Suppose the economy is initially experiencing a recessionary gap. An increase in the size of the budget deficit will

• A) increase the size of the recessionary gap.
• B) reduce the size of the recessionary gap.
• C) lead to an increase in prices with no increase in real GDP.
• D) lead to a decrease in prices with an increase in real GDP.

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Definitions:

Sound Wave

A wave of compression and rarefaction, by which sound is propagated in an elastic medium such as air.

Loudness

The dimension of auditory experience related to the intensity of a pressure wave.

Feature Detector Cells

Neurons in the brain that specialize in detecting specific features of your environment, such as angles, edges, and movement.

Visual Cortex

The part of the cerebral cortex responsible for processing visual information.