The Aggregate Expenditure Curve Will Become Steeper If

question 162

Multiple Choice

The aggregate expenditure curve will become steeper if

• A)income tax rates are raised.
• B)firms expect an increase in future profit.
• C)income tax rates are lowered.
• D)people show an increased preference for foreign- made products.
• E)people become thriftier.

---

Definitions:

Roommate

A person with whom one shares a living facility such as a room or apartment but is not related or romantically involved with.

Content Validity

The extent to which a test measures all aspects of the concept or construct it intends to assess.

Construct Validity

The extent to which an assessment accurately measures what it is supposed to measure.

Criterion Validity

The extent to which a measure is related to an outcome. It assesses whether a test reflects a certain set of abilities by correlating test results with a criterion measure.