Consider the AD/AS Model

question 39

Multiple Choice

Consider the AD/AS model.An increase in government purchases will have no impact on equilibrium real GDP if

• A)the AS curve slopes upward.
• B)the AS curve is vertical.
• C)the AS curve is horizontal.
• D)the marginal propensity to spend is very small.
• E)the simple multiplier is very small.

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Definitions:

Chapter 7

A provision under the U.S. Bankruptcy Code dealing with the process of liquidation, where a debtor's assets are sold to pay creditors.

Meeting of Creditors

A gathering in bankruptcy proceedings where creditors can question the debtor about their finances and the bankruptcy petition.

Debtor's Assets

Property owned by an individual or entity that owes money to creditors, which can be used to pay off debts.

Presumption of Abuse

A legal assumption that an action is undertaken with the intention of exploiting or harming, especially in contexts like bankruptcy filings where managing debt responsibly is questioned.