Under Which of the Following Conditions Will a Change in Government

question 108

Multiple Choice

Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?

• A) The aggregate demand curve is relatively flat.
• B) The aggregate demand curve is relatively steep.
• C) The short-run aggregate supply curve is relatively flat.
• D) The aggregate demand curve is vertical.
• E) The short-run aggregate supply curve is vertical.

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Definitions:

Consolidation

The process of combining the financial statements of separate but related entities to present as those of a single economic entity.

NCI

Non-Controlling Interest, a minority shareholding in a subsidiary not owned by the parent company, reflecting those shareholders' claim on assets and earnings.

Disclosure

The provision of financial and other significant information about a company to its stakeholders, typically through financial statements and notes, to facilitate informed decision-making.

Subsidiary

A company that is controlled by another company, typically referred to as the parent company.