How Does an Increase in Government Spending Affect the Aggregate

question 95

Multiple Choice

How does an increase in government spending affect the aggregate expenditure line?

• A)It shifts the aggregate expenditure line upward.
• B)It shifts the aggregate expenditure line downward.
• C)It increases the slope of the aggregate expenditure line.
• D)It decreases the slope of the aggregate expenditure line.
• E)It shifts the aggregate expenditure line upward and increases its slope.

Identify the appropriate leadership style to apply in different situational contexts according to Fiedler's contingency model and Hersey-Blanchard's situational leadership model.

Analyze the role of leader-member relations, task structure, and positional power in leadership effectiveness as per Fiedler's contingency model.

Recognize the importance of adapting leadership styles to the readiness levels of the followers in Hersey-Blanchard's situational leadership model.

Describe the specific behaviors associated with directive, supportive, participative, and achievement-oriented leadership styles in House's path-goal theory.

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Definitions:

Suffer Losses

occurs when a business or individual incurs expenses that exceed their revenues.

Long-run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment.

Long-run Equilibrium

A state in which all aspects of a market, including supply and demand, production costs, and economic resources, are balanced, allowing for consistent economic conditions over time.

Perfectly Competitive

A market structure characterized by many sellers and buyers, homogeneous products, free entry and exit, and perfect information, leading to an optimal distribution of resources.