An Increase in Government Spending Causes the Equilibrium Level of Aggregate

question 20

Multiple Choice

An increase 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)rise;IS;right
• C)fall;IS;left
• D)fall;LM;left

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Definitions:

Widowers

Males who are widowed and have not entered into another marriage.

Congenial Siblings

Brothers and sisters who share a close, friendly, and amicable relationship, often characterized by mutual support and understanding.

Family Bonds

Emotional connections and ties among family members that are formed through shared experiences, love, support, and understanding.

Intermediate Stage

This term refers to a middle phase in a process, development, or series, where significant progress has been made but the final goal has not yet been reached.