In the Short Run, an Increase in Government Expenditure Will

question 190

Multiple Choice

In the short run, an increase in government expenditure will
I. shift the aggregate demand curve rightward.
II. increase real GDP.
III. increase the government expenditure multiplier.
IV. increase the tax multiplier.

• A) I, II and III
• B) I and II
• C) I and III
• D) III and IV

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Definitions:

Macrosystems

The broadest context in ecological systems theory, encompassing societal norms, values, and laws that influence an individual's development.

Nuclear Families

Families consisting of parents (including single parents) and their children.

Extended Families

Families in which not only parents and their children but other kin—grandparents, cousins, nieces and nephews, or more distant family relations—share a household.

Allocaregiving

Child care and protection provided by group members other than the parents, usually other relatives.