According to the Traditional Keynesian Analysis, If the Government Increases

question 195

Multiple Choice

According to the traditional Keynesian analysis, if the government increases spending and pays for all of it by raising current taxes, then

• A) aggregate demand will decrease.
• B) a budget deficit will occur.
• C) a budget surplus will occur.
• D) aggregate demand will increase.

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Definitions:

Vestibular Senses

A sensory system located in the inner ear that contributes to our balance and spatial orientation by detecting changes in motion and gravity.

Kinesthetic Senses

The sense of body position and movement of muscles, tendons, and joints, often referred to as muscle memory or the sense of balance.

Motion Sickness

A condition where there is a discrepancy between visually perceived movement and the vestibular system's sense of movement, causing nausea, dizziness, and other symptoms.

Perceptual Constancies

A phenomenon in psychology where our perception of an object's characteristics (such as size, shape, and color) remains constant despite changes in the sensory input.