In the Traditional Keynesian Model, If the Government Increases Spending

question 101

Multiple Choice

In the traditional Keynesian model, if the government increases spending, then

• A) real Gross Domestic Product (GDP) will rise and the price level will remain constant.
• B) real Gross Domestic Product (GDP) will increase and the price level will fall.
• C) both real Gross Domestic Product (GDP) and the price level will rise.
• D) real Gross Domestic Product (GDP) will remain constant and the price level will rise.

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Definitions:

Exclusionary Policies

Rules or practices designed to intentionally or unintentionally exclude certain groups or individuals.

Stereotypes

Stereotypes are oversimplified and generalized beliefs about a particular group of people or things, which often do not consider individual differences.

Self-fulfilling Prophecies

Expectations about a situation or person that lead to actions which cause the expectations to come true.

Discriminations

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.