The Argument That an Increase in Government Purchases Increases Labour

question 49

Multiple Choice

The argument that an increase in government purchases increases labour supply relies on the assumption that

• A)government purchases are substitutes for consumer purchases.
• B)government purchases decrease the interest rate.
• C)government purchases decrease the wealth of individuals.
• D)government purchases are neutral.

---

Definitions:

Courts

Institutions that administer justice through the interpretation and application of laws.

Fraudulent Misrepresentation

The act of deliberately providing false information or deceiving another party, leading to harm or loss.

Odometer

An odometer is a device used to measure the distance traveled by a vehicle, typically recorded in miles or kilometers.

Duress

Duress involves compelling someone to act against their will by using threats, force, or coercion in the context of making a contract.