If the Government Wished to Shift Aggregate Demand to the Right

question 55

Multiple Choice

If the government wished to shift aggregate demand to the right, it might:

• A) increase government spending.
• B) increase income taxes.
• C) pressure the Fed to decrease the money supply.
• D) Any of these things might cause aggregate demand to shift to the right.

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Definitions:

Preoperational

The stage in Piaget's theory of cognitive development in which children from about 2 to 7 years old develop memory and imagination, but do not yet think logically.

Formal Operational Thought

A stage of cognitive development in which individuals are able to think abstractly, reason logically, and manage problems systematically.

Logical

Pertaining to the use of reason and sound judgment in thinking or arguing.

Abstract

A brief summary of a research article, thesis, review, or other long report on a subject or project.