An Increase in Government Spending Will

question 18

Multiple Choice

An increase in government spending will:

• A) shift the aggregate expenditure line upwards and decrease equilibrium output.
• B) shift the aggregate expenditure line downwards and decrease equilibrium output.
• C) shift the aggregate expenditure line downwards. and increase equilibrium output.
• D) shift the aggregate expenditure line upwards and increase equilibrium output.

---

Definitions:

Habits

Regular tendencies or practices, especially ones that are hard to give up.

Reinforcement Schedules

The strategies used in behavior modification that determine how and when a response will be rewarded.

Mentally Alert

The state of being aware and able to think and respond quickly; sharpness of mind.

Intermittent

Occurring at irregular intervals; not continuous or steady.