An Expenditure-Changing Policy

question 3

Multiple Choice

An expenditure-changing policy

• A) alters the direction of the economy's total demand for goods and services.
• B) alters the level of the economy's total demand for goods and services.
• C) has no effect on aggregate demand.
• D) is the same thing as an expenditure-switching policy.
• E) affects aggregate supply but not aggregate demand.

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Definitions:

Natural Selection

A process in evolutionary biology where organisms better adapted to their environment tend to survive and produce more offspring.

Structural Traits

The inherent characteristics or features that define the makeup or composition of an entity or organism.

Genetic Traits

Inherited characteristics passed from parents to offspring through genes.

Behavioral Traits

Characteristics or habits of an individual's behavior that are consistent over time and can be observed.