The Ricardian Equivalence Theorem States That

question 125

Multiple Choice

The Ricardian equivalence theorem states that

• A) an increase in government spending has no effect on aggregate supply.
• B) increases in government spending have a larger impact on real Gross Domestic Product (GDP) than decreases in taxes.
• C) an increase in the government budget deficit created by a current tax cut has no effect on aggregate demand.
• D) an increase in the government budget deficit has no effect on real Gross Domestic Product (GDP) because it only affects the price index.

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Definitions:

Motivation To Transfer

The degree to which learners possess a positive attitude and intention to apply the skills or knowledge gained from training to their job.

Performance-Outcomes Expectations

Anticipations regarding how well tasks or responsibilities will be executed and the results that will be achieved.

Opportunities To Use

Situations or circumstances that allow individuals to apply newly acquired skills or knowledge in real-world contexts.

Relapse Prevention

Relapse Prevention is a strategy in behavior therapy aimed at preventing or managing the occurrence of a setback in a patient's recovery from a psychological disorder or substance addiction.