An Increase in Government Spending Shifts Aggregate Demand

question 81

Multiple Choice

An increase in government spending shifts aggregate demand

• A)to the right.The larger the multiplier is,the farther it shifts.
• B)to the right.The larger the multiplier is,the less it shifts.
• C)to the left.The larger the multiplier is,the farther it shifts.
• D)to the left.The larger the multiplier is,the less it shifts.

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Definitions:

Mound-Shaped

Refers to a symmetrical, bell-shaped curve often associated with the normal distribution in statistics.

Standard Deviation

An indicator that quantifies the spread or variability among a collection of numbers, showing the extent to which these numbers differ from their average.

Mean

The mathematical mean of a collection of numbers, obtained by summing them up and then dividing by the total count of the numbers.

Mean Salary

The average amount of income earned by employees in a particular job, sector, or region, calculated by summing all salaries and dividing by the number of employees.