If Government Expenditure Increases by $200 Billion and Taxes Simultaneously

question 180

Multiple Choice

If government expenditure increases by $200 billion and taxes simultaneously increase by $200 billion,then aggregate demand

• A)remains the same.
• B)decreases no matter what happens to aggregate supply.
• C)increases no matter what happens to aggregate supply.
• D)increases only if aggregate supply increases.
• E)increases only if aggregate supply decreases.

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Definitions:

Fourth Amendment

The Fourth Amendment to the United States Constitution protects citizens from unreasonable searches and seizures, requiring any warrant to be judicially sanctioned and supported by probable cause.

Probable Cause

A reasonable basis for believing that a crime may have been committed, which is a required standard for arrests, search warrants, and other legal actions.

Plea Bargaining

A legal process in which the defendant and prosecutor negotiate a compromise, often involving the defendant pleading guilty to a lesser charge in exchange for a reduced sentence.

Federal Prosecutor

A government attorney who represents the United States in prosecuting criminal cases in federal court.