An Expenditure-Changing Policy

question 3

Multiple Choice

An expenditure-changing policy

• A) alters the direction of the economy's total demand for goods and services.
• B) alters the level of the economy's total demand for goods and services.
• C) has no effect on aggregate demand.
• D) is the same thing as an expenditure-switching policy.
• E) affects aggregate supply but not aggregate demand.

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Definitions:

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