A Temporary Increase in Government Purchases in the Classical Model

question 40

Multiple Choice

A temporary increase in government purchases in the classical model would

• A)shift the production function to the right.
• B)shift the marginal product of labor curve to the left.
• C)shift the labor demand curve to the right.
• D)shift the labor supply curve to the right.

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Definitions:

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, resulting in siblings that are genetically distinct.

Identical Twins

Twins that develop from a single fertilized egg, sharing 100% of their genetic material and often used in studies to explore the nature vs. nurture debate.

Gray Matter

A major component of the central nervous system, consisting of neuronal cell bodies, dendrites, and unmyelinated axons, associated with processing and cognition.

Dizygotic Twins

Also known as fraternal twins, they are siblings born at the same time as a result of two different eggs being fertilized by two different sperm, sharing about 50% of their DNA.