An Increase in Government Spending Will Result in A

question 71

Multiple Choice

An increase in government spending will result in a:

• A) movement along the aggregate demand curve upwards.
• B) movement along the aggregate demand curve downwards.
• C) shift the aggregate expenditure line downwards.
• D) shift the aggregate expenditure line upwards.

---

Definitions:

Pure Monopoly

A market structure characterized by a single seller that controls the entire supply of a unique product or service, with no close substitutes, giving them significant market power.

Oligopolistic Market

A market structure characterized by a small number of large firms dominating the industry, leading to limited competition and significant influence over market prices.

Buyers

Buyers are individuals or entities that purchase goods or services from sellers in exchange for money or other considerations.

Sellers

Parties that provide products or services available for purchase in the market.