Figure 34-10 -Refer to Figure 34-10.Suppose the Multiplier Is 2 and There

question 57

Short Answer

Figure 34-10
-Refer to Figure 34-10.Suppose the multiplier is 2 and there is no crowding-out,but there is an accelerator effect.If the economy is currently at point A,then an increase in government purchases of $10 will likely increase aggregate demand to point ----- where output is $-----.

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Definitions:

Working Memory

A cognitive processing module with limited storage capacity, used for holding information momentarily for processing tasks.

Short-Term Memory

A limited-capacity store that can maintain unrehearsed information for about 20 to 30 seconds.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, momentarily retaining impressions of sensory information after the original stimuli have ended.

Proactive Interference

A phenomenon where old memories hinder the capacity to remember new information.