In the Short Run, If the Government Attempts to Increase

question 239

Multiple Choice

In the short run, if the government attempts to increase aggregate demand, it should

• A) increase government spending and reduce taxes.
• B) decrease government spending and increase taxes.
• C) shift the long-run aggregate supply curve to the right.
• D) shift the short-run aggregate supply curve to the right.

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Definitions:

Resource-Holding Potential

The ability of an individual or group to control valuable resources against competitors, often affecting mating success and survival.

Competitive Ability

The capability of an organism to obtain resources, mates, or territory in the face of competition from other individuals or species.

Wet Forest

A forest ecosystem characterized by high humidity and regular precipitation, leading to a dense understory and rich biodiversity.

Ideal Free Distribution

A theory in ecology predicting how animals distribute themselves among resources to maximize their fitness.