If Government Expenditure on Goods and Services Increase by $100

question 112

Multiple Choice

If government expenditure on goods and services increase by $100 billion,then aggregate demand

• A)increases by $100 billion.
• B)increases by less than $100 billion.
• C)increases by more than $100 billion.
• D)remains unchanged.
• E)decreases by more than $100 billion.

---

Definitions:

CDs

Compact Discs, a form of digital optical disc data storage, used for storing digital data, including music, software, and data files.

Budget Constraint

The limitation on the purchase of goods and services based on the availability of income and wealth, reflecting the trade-off between different combinations of goods.

Bell Peppers

A type of large, sweet red, green, or yellow vegetable, also known as a capsicum, commonly used in cooking for its flavor.

Black Beans

A type of legume that is often used in Latin American and Caribbean cuisine, known for its black color, small size, and rich, slightly sweet flavor.