Everything Else Held Constant,an Increase in Government Spending ________ Aggregate

question 4

Multiple Choice

Everything else held constant,an increase in government spending ________ aggregate ________.

• A)increases;demand
• B)decreases;demand
• C)decreases;supply
• D)increases;supply

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Definitions:

Long-Run Cost Curve

A graphical representation showing the lowest cost at which any given level of output can be produced in the long run, where all inputs are variable.

Industry Supply Curve

A graph that shows the quantity of goods that producers are willing and able to sell at different price levels in a specific industry.

Marginal Costs

Marginal costs are the additional costs incurred to produce one more unit of a product or service.

Total Cost Function

Describes the complete cost of producing a given level of output, summing up all variable and fixed costs associated with production.