Assume the Economy Is Initially Operating at the Natural Level

question 65

Multiple Choice

Assume the economy is initially operating at the natural level of output.Now suppose a budget is passed that calls for an increase in government spending.This increase in government spending will,in the medium run,have NO effect on which of the following?

• A)employment
• B)the interest rate
• C)the price level
• D)all of the above
• E)none of the above

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Definitions:

Parallel Tank Circuit

A resonant circuit consisting of a capacitor and an inductor connected in parallel, used to select or filter specific frequencies.

Resonant Frequency

The frequency at which a system oscillates at its maximum amplitude.

Bandwidth

The range of frequencies within a given band, especially that used for transmitting a signal.

Angle Theta

Often used to represent an angle in a geometric figure or the phase difference in waves.