An Increase in Government Spending on Goods to Build or Repair

question 65

Multiple Choice

An increase in government spending on goods to build or repair infrastructure

• A)shifts the aggregate demand curve to the right.
• B)has a multiplier effect.
• C)shifts the aggregate supply curve to the right,but this effect is likely more important in the long run.
• D)All of the above are correct.

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Definitions:

Psychosis

A severe mental disorder in which thought and emotions are so impaired that contact is lost with external reality.

Manic-depressive

An alternate term for bipolar disorder, a mental health condition characterized by extreme mood swings including manic highs and depressive lows.

Obsessive-compulsive

Referring to a disorder characterized by uncontrollable, recurring thoughts (obsessions) and behaviors (compulsions) that the individual feels compelled to repeat.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.