Suppose, for a Certain Economy, Real and Potential GDP Are

question 94

Multiple Choice

Suppose, for a certain economy, real and potential GDP are initially equal. Then government purchases permanently increase. Compared to the baseline, we would expect to see, in the medium run,

• A)a decrease in consumption and an increase in both net exports and investment.
• B)a decrease in consumption, investment, and net exports.
• C)an increase in consumption, a decrease in net exports, and no change in investment.
• D)an increase in consumption and net exports and a decrease in investment.
• E)an increase in consumption and a decrease in both net exports and investment.

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Definitions:

Purchase Intentions

The probability or inclination of customers to purchase a product or service soon.

Selling Technique

Strategies or methods used to persuade customers to purchase a product or service.

Buying Decision Process

Refers to the stages consumers go through before making a purchase, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Buying Decision Process

A series of steps a consumer goes through before, during, and after purchasing a product or service.