What Would Happen to Aggregate Demand (AD)if the Federal Government

question 1

Multiple Choice

What would happen to aggregate demand (AD) if the federal government increased military purchases and provincial and local governments decreased their road building budgets at the same time?

• A)AD would increase if the change in federal purchases were greater than the change in provincial and local purchases.
• B)AD would increase, because only federal government purchases affect AD.
• C)AD would decrease if the change in federal purchases were greater than the change in provincial and local purchases.
• D)AD would decrease, because only provincial and local government purchases affect AD.

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Definitions:

Population

The total number of people inhabiting a specific area or the whole planet, characterized by factors such as density, distribution, and growth rate.

Participant Observation

A methodological approach in social research where the observer seeks to gain a close and intimate familiarity with a given group of individuals and their practices through an intensive involvement with people in their natural environment, often over an extended period of time.

Social Milieu

The social environment or context that individuals find themselves in, which influences their beliefs, behaviors, and interactions.

Objectively Observe

The process of gathering information or data through observation in a way that is not influenced by personal feelings or opinions.