Everything Else Held Constant,an Increase in Government Spending Will Cause

question 24

Multiple Choice

Everything else held constant,an increase in government spending will cause

• A)aggregate demand to increase.
• B)aggregate demand to decrease.
• C)the quantity of aggregate demand to increase.
• D)the quantity of aggregate demand to decrease.

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Definitions:

Capital Formation

The process of building up the physical and financial assets of a country or region for the purpose of increasing its capacity for production.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Human Resources

The department within an organization that is responsible for managing employee-related processes including hiring, training, compliance, and benefits.

Developed Nations

Countries with advanced industrial infrastructure, high living standards, and sophisticated economies.