In the Short-Run, an Increase in Government Purchases Causes

question 12

Multiple Choice

In the short-run, an increase in government purchases causes

• A) a shift of the DD curve to the left, output increases
• B) a shift of the DD curve to the right, output decreases
• C) a shift of the DD curve to the left, output decreases
• D) a shift of the DD curve to the right, output increases
• E) a shift of the DD curve upwards, supply increases

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Definitions:

Accumulate Fortunes

The process or act of amassing a significant amount of wealth or resources over time.

Poverty

The state of having insufficient financial resources to meet basic living needs such as food, shelter, and clothing.

Ethical Relativist

An individual who believes that morality is relative to the norms of one's culture, meaning that what is considered moral in one society may be considered immoral in another.

Central Authority

A central authority is a governing body or administrative organization that has primary responsibility for overseeing a specific area of policy or regulation at a national or international level.