The Long-Run Effect of a Decrease in Government Purchases Can

question 5

Multiple Choice

The long-run effect of a decrease in government purchases can be described as the period of time when

• A)the inflation adjustment line intersects the aggregate demand curve at the level of potential GDP.
• B)firms are adjusting their prices and inflation is increasing to its new level.
• C)real GDP is below potential GDP.
• D)there is no spending balance.
• E)firms are adjusting their prices and inflation is decreasing to its new level.

Examine case studies of population control and their outcomes.

Compare distinct types of communities and their lifestyles.

Understand the basic concepts of problem-solving strategies such as trial and error, heuristics, and algorithms.

Identify and explain the role of framing and how it influences decision-making and problem-solving.

---

Definitions:

Tang Dynasty

A dynasty in China (618-907 AD) known for its cultural, artistic, and intellectual advancements, as well as its cosmopolitan capital, Chang'an.

Zen Simplicity

An aesthetic and philosophical concept emphasizing minimalism, naturalness, and intuitive understanding, rooted in Zen Buddhism.

Unified Silla Kingdom

A Korean state that existed from 668 to 935 AD, known for unifying the Korean Peninsula and its cultural achievements.

Sesshu Toyo

A notable Japanese painter and Zen monk from the 15th century, renowned for his ink landscapes.