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Figure 26.3
Identify the labeled structure(s) in each of the following questions.
-Identify the structure(s) indicated by Label B.
Aggregate Demand
The total market demand for goods and services within an economy at a fixed price level over a certain time period.
Crowding-Out Effect
The offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending.
Government Spending
The total amount of money that a government expends on public services, social welfare programs, infrastructure, and defense, among other areas.
Interest Rates
A charge, expressed in terms of a percentage of the principal, applied by a lender to a borrower for using its resources.
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