Assuming a Multiplier Effect,but No Crowding-Out or Investment-Accelerator Effects,a $100

question 80

Multiple Choice

Assuming a multiplier effect,but no crowding-out or investment-accelerator effects,a $100 billion increase in government expenditures shifts aggregate

• A)demand rightward by more than $100 billion.
• B)demand rightward by less than $100 billion.
• C)supply leftward by more than $100 billion.
• D)supply leftward by less than $100 billion.

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Definitions:

Legally Binding

An agreement or contract that is enforceable by law, where parties are obligated to fulfill their contractual duties.

Unionization

The process by which workers form or become members of a labor union to collectively bargain for better wages, working conditions, and benefits.

Public Sector

The part of the economy that is controlled by the government, encompassing public services and enterprises.

Collective Bargaining Agreement

A written contract negotiated through collective bargaining by employees, through their representatives, and their employer, dictating the terms of employment.