When Government Spending Rises

question 228

Multiple Choice

When government spending rises

• A) aggregate demand rises.
• B) aggregate demand falls.
• C) the aggregate price level falls.
• D) it crowds out net exports.

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Definitions:

Museums

Institutions that collect, preserve, study, and exhibit objects of scientific, historical, or cultural importance to educate and entertain the public.

Catholic Reformation

A movement within the Catholic Church in the 16th century aimed at making internal reforms and countering the Protestant Reformation.

Scientific Revolution

A period of major advancements in science and technology during the 16th to 18th centuries, leading to significant changes in society and the view of the natural world.

Protestantism

A form of Christian faith and practice that originated with the Reformation, a movement against what its followers perceived to be errors in the Roman Catholic Church.