If the Expansionary Effect of Additional Government Expenditure ________ the Contractionary

question 152

Multiple Choice

If the expansionary effect of additional government expenditure ________ the contractionary effect of the fall in private investment,the labor demand curve ________.

• A) exceeds; will shift to the left
• B) exceeds; will remain unchanged
• C) equals; will shift to the right
• D) equals; will remain at its initial position

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Definitions:

Probability

The likelihood or chance of an event occurring.

Expected Utility

A theory in economics that explains how people make decisions under uncertainty, based on the anticipated satisfaction or utility from outcomes.

Risk-averse

A description of an individual or entity that prefers to avoid risk, often opting for the less risky of available options.

Probability

A measure of the likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.