If the Government Were to Decrease Spending, Aggregate Demand Would

question 88

Multiple Choice

If the government were to decrease spending, aggregate demand would _______ and GDP would _______.

• A) fall; fall as well.
• B) rise; fall.
• C) fall; rise.
• D) rise; rise as well.

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Definitions:

Sensory

Relating to sensation or the physical senses; transmission and perception of sensory information.

Neurological

Pertaining to the nervous system and its diseases or disorders.

Cooing

The early vocalization of babies that involves the production of soft, melodious sounds, typically occurring between 2 to 4 months of age.

Cognitive Development

The construction of thought processes, including remembering, problem-solving, and decision-making, from childhood through adolescence to adulthood.