Assuming No Crowding-Out, Investment-Accelerator, or Multiplier Effects, How Will a $100

question 67

Multiple Choice

Assuming no crowding-out, investment-accelerator, or multiplier effects, how will a $100 billion increase in government expenditures shift aggregate demand?

• A) It will shift aggregate demand right by more than $100 billion.
• B) It will shift aggregate demand right by $100 billion.
• C) It will shift aggregate demand right by less than $100 billion.
• D) It will shift aggregate demand left by more than $100 billion.

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Definitions:

Urbanization

The process by which rural areas become transformed into urban areas, often associated with industrialization and the movement of people to cities.

Geographical Pattern

The arrangement or distribution of geographical features or phenomena across Earth's surface.

Heavy Industry

A sector of the economy involved in the production of large goods and machinery, such as steel, automobiles, and machinery, often associated with high capital investment and raw material consumption.

Public Schools

In the United States, public schools are government-funded educational institutions providing free education to children. In the UK, paradoxically, it refers to prestigious and often expensive independent schools.