In an Aggregate Demand-Aggregate Supply Diagram, Equal Decreases in Government

question 77

Multiple Choice

In an aggregate demand-aggregate supply diagram, equal decreases in government spending and taxes will

• A) shift the AD curve to the right.
• B) increase the equilibrium GDP.
• C) not affect the AD curve.
• D) shift the AD curve to the left.

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Definitions:

Cerebral Aneurysm

The ballooning out of a weak area in the wall of an artery in the brain, which can lead to bleeding if it ruptures.

Regression

A return to a former or less developed state, or in statistics, a measure of the relationship between variables.

Therapeutically

In a manner or mode intended for healing or treating illness.

Uniform Determination

A consistent and unwavering decision-making process.