When Spending by the Federal Government Exceeds Net Taxes,_____

question 144

Multiple Choice

When spending by the federal government exceeds net taxes,_____.

• A)the price level tends to fall
• B)the money supply must fall
• C)the aggregate demand curve shifts rightward
• D)aggregate supply moves rightward
• E)there is a federal budget surplus

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Definitions:

Price Leadership

A strategy where the dominant firm in a market sets the price of goods or services, and other competitors follow suit, often seen in oligopolistic markets.

Industry Agreement

A collective consensus or a formal contract among companies within the same industry, often regarding standards, pricing, or other competitive practices.

Nonprice Competition

A marketing strategy in which a company tries to differentiate its product or service from competing products on the basis of attributes other than price.

Advertising

A method used by businesses to promote their products or services to potential customers.