If an Economy Initially Starts Away from the Steady State

question 34

Multiple Choice

If an economy initially starts away from the steady state ________.

• A)output will gradually fall over time
• B)the economy will converge to the steady state in the long-run
• C)consumption spending must be greater than investment spending
• D)consumption spending must rise

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Definitions:

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed premises, each of which shares a term with the conclusion.

Negative Premises

Statements within an argument that deny or negate a particular proposition or assumption.

Validity

The quality of being logically or factually sound; in logic, it refers to an argument where the conclusion logically follows from the premises.

Validity Rules

Refer to the principles or criteria used to determine whether arguments or reasoning processes are logically sound.