Which of the Following Explains Why the Government Should Not

question 115

Multiple Choice

Which of the following explains why the government should not increase spending by the entire amount of the AD shortfall to move the economy to full employment?

• A)Price level changes will make up for the difference between the fiscal stimulus and the AD shortfall.
• B)The multiplier process will contribute to an additional increase in aggregate demand that will cause an inflationary gap.
• C)The government can increase taxes to create an additional increase in aggregate demand.
• D)The price level is constant.

---

Definitions:

Nipples

The protruding part on the breast through which milk is delivered; sensitive to stimulation and can vary widely in appearance.

Breasts Rounded

A description typically referring to the curved, protruding shape of the breast on the chest.

Prostate Cancer

A form of cancer that occurs in the prostate, a small walnut-shaped gland in men, responsible for producing seminal fluid.

Canadian Cancer Society

A national, community-based organization of volunteers whose mission is to eradicate cancer and enhance the quality of life of people living with cancer.