What Is the Most Likely Effect of an Increase in Government

question 113

Multiple Choice

What is the most likely effect of an increase in government spending on goods to build or repair infrastructure?

• A) It would shift the aggregate-demand curve to the left.
• B) It would shift the long-run aggregate-supply curve to the left.
• C) It would shift the short-run aggregate-supply curve to the left.
• D) It would shift the long run aggregate-supply curve to the right.

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Definitions:

Coalitions

Agreements or alliances between parties, often political or organizational, formed to achieve a common goal or to engage in joint action.

Marine Sponges

Simple aquatic animals that live in marine environments, known for their porous bodies and ability to filter large amounts of water to feed.

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning—a 'gut feeling'.

Implicit Knowledge

Knowledge that is acquired through experience and is not explicitly stated, making it difficult to communicate or teach to others.