A Reduction in Government Spending Causes the Equilibrium Level of Aggregate

question 125

Multiple Choice

A reduction in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________,everything else held constant.

• A)rise;LM;right
• B)fall;IS;left
• C)fall;LM;left
• D)rise;IS;right

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Definitions:

Cognitive Restructuring

Challenging destructive thoughts, beliefs, and internal self-talk and substituting self-enhancing cognitions.

Thinking Patterns

Habitual ways of thinking that can influence one's attitudes, behavior, and decision-making.

Behavior Change

A process of altering habits, actions, and patterns of behavior to achieve certain health or personal goals.

Ice Cream

A sweet, frozen dessert made from cream or milk and sugar, often flavored with fruits, chocolate, or nuts.