Government Policy to Reduce Unemployment and Increase National Output Can

question 209

Multiple Choice

Government policy to reduce unemployment and increase national output can be illustrated by an

• A)outward shift of the aggregate demand curve caused by an increase in government spending.
• B)outward shift of the aggregate supply curve caused by a reduction in government spending.
• C)inward shift of the aggregate demand curve caused by an increase in government spending.
• D)inward shift of the aggregate supply curve caused by a reduction in government spending.

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Definitions:

Poverty

A state or condition in which an individual or community lacks the financial resources and essentials for a minimum standard of living.

Great Society

A collection of initiatives in the U.S. introduced by President Lyndon B. Johnson with the goal of eradicating poverty and racial inequality.

City Riots

A form of public disturbance involving an act of violence by a crowd of people in an urban area.

Federal Deficit

The shortfall when a government's expenditures exceed its revenues within a given fiscal year.