_____ Is the Part of the Budget That Works Its

question 292

Multiple Choice

_____ is the part of the budget that works its way through Congress each year; it includes programs such as national defense, transportation, Medicaid, and education.

• A) Discretionary spending
• B) Mandatory spending
• C) Consumer spending
• D) Contractionary spending

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Definitions:

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, in a given time period.

Consumer Demand

The desire of individuals or households to purchase goods and services at certain prices.

Investment Goods

Goods that are purchased not for immediate consumption but for producing other goods or services in the future.

Classical Economists

Economists from the late 18th and 19th centuries who believed in the principles of free markets, limited government, and self-regulating behavior of the economy.