Which of the Following Tends to Make Aggregate Demand Shift

question 169

Multiple Choice

Which of the following tends to make aggregate demand shift right farther than the amount government expenditures increase?

• A)the crowding-out effect
• B)the multiplier effect
• C)the wealth effect
• D)the interest-rate effect

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Definitions:

Government-provided Health Insurance

Health insurance schemes funded and managed by the government to offer medical coverage to its citizens.

Insurance Exchanges

Government-regulated markets for health insurance in which individuals seeking to purchase health insurance to comply with the personal mandate of the Patient Protection and Affordable Care Act (PPACA) of 2010 will be able to comparison shop among insurance policies approved by regulators. Each state will have its own exchange.

Government-set Standards

Regulations established by government bodies to ensure quality, safety, and fairness in the production, provision, or use of goods and services.

Efficiency Loss

The loss of economic efficiency that occurs when the competitive equilibrium in a market is not achieved or is distorted.