Consider the Following Statement: "If the Government Attempts to Raise

question 49

Multiple Choice

Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing is increasing the price level." The statement rests on the assumption that:

• A) the aggregate demand curve is a horizontal line.
• B) the aggregate supply curve is a vertical line.
• C) the aggregate supply curve is upward-sloping.
• D) the aggregate supply curve is downward-sloping.
• E) the aggregate supply curve is a horizontal line.

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Definitions:

Standardized Tests

Exams that are designed, administered, and scored in a consistent manner to assess the skills or performance of individuals in a comparative way.

Physical Activity

Physical activity involving the contraction of skeletal muscles which leads to energy being spent.

Cognitive Therapy

A type of therapy that aims to change attitudes and beliefs, assuming that behavior change will follow.

Moderately Depressed

Describes a state of depression characterized by symptoms that are present but not severe enough to incapacitate the individual's daily function.