Which of the Following Statements Concerning a Change in Government

question 166

Multiple Choice

Which of the following statements concerning a change in government purchases is true?

• A)The slope of the expenditure line and the magnitude of the AD curve's shift are negatively correlated.
• B)The slope of the expenditure line does not affect the magnitude of the AD curve's shift.
• C)The slope of the expenditure line and the magnitude of the AD curve's shift are positively correlated.
• D)The correlation between the slope of the expenditure line and the magnitude of the AD curve's shift depends negatively on the rate of inflation.
• E)The correlation between the slope of the expenditure line and the magnitude of the AD curve's shift depends positively on the rate of inflation.

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Definitions:

Wages

Payments made to labor for their services, typically expressed per hour or per annum.

Wage Paid

The compensation given to labor for the service provided, usually calculated as an hourly, daily, or per task basis.

Market

A place or system where goods and services are exchanged between buyers and sellers.

Soybean Workers

Individuals engaged in the cultivation, maintenance, and harvesting of soybeans.