Under Which of the Following Conditions Will a Change in Government

question 108

Multiple Choice

Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?

• A) The aggregate demand curve is relatively flat.
• B) The aggregate demand curve is relatively steep.
• C) The short-run aggregate supply curve is relatively flat.
• D) The aggregate demand curve is vertical.
• E) The short-run aggregate supply curve is vertical.

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Definitions:

Moral Principles

Fundamental beliefs about right and wrong that guide individuals' behaviors and decision-making in personal and professional contexts.

Enforceable

Capable of being implemented or upheld by legal means.

Tobacco-Producing

The agricultural cultivation and processing of tobacco plants for the production of tobacco products.

Free Trade

An economic policy that allows imports and exports among member countries with little or no tariff barriers, quotas, or prohibitions.