In the Long Run, a Higher Government Deficit Does Not

question 24

Multiple Choice

In the long run, a higher government deficit does not affect equilibrium real Gross Domestic Product (GDP) , so that continuous increases in the government deficit will

• A)lead to greater tax revenues.
• B)reduce the price level.
• C)reduce spending on privately provided goods and services.
• D)increase the unemployment rate.

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Definitions:

Melanoma

A type of cancer that develops in the pigment-producing cells known as melanocytes, often manifesting as a mole with an irregular shape, size, or color.

Color Varies

Indicates that the color of an object or substance can change under different conditions or in different instances.

Ordinary Mole

A small, often dark, benign growth on the skin arising from nevus cells that are usually harmless.

Symmetrical

Having parts that match in size, shape, and position on both sides of a dividing line.