Suppose That Government Spending on Defense Rises by $50 Billion

question 98

Multiple Choice

Suppose that government spending on defense rises by $50 billion.What happens to the aggregate demand curve?

• A)It shifts right by $50 billion at each price level.
• B)It shifts right by more than $50 billion at each price level.
• C)It shifts right by less than $50 billion at each price level.
• D)The aggregate demand does not shift; the aggregate supply curve shifts right by $50 billion at each price level.

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Definitions:

Goal Consistency

The alignment of objectives and targets across different levels or areas within an organization, ensuring that all efforts are directed towards common outcomes.

Goal Difficulty

The level of challenge involved in achieving a specific objective.

Goal Agreement

The alignment of objectives among team members or within an organization.

Management by Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.