According to Aggregate Demand and Supply Analysis,an Increase in Government

question 7

Multiple Choice

According to aggregate demand and supply analysis,an increase in government spending will cause aggregate demand to ________,causing output to ________ ,everything else held constant.

• A)increase; fall
• B)increase; rise
• C)decrease; fall
• D)decrease; rise

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Definitions:

Lobbying

Expresses opinions and preferences to government officials.

Personal Contacts and Networks

Connections and relationships with individuals for professional or personal gain.

Political Action Committees

Organizations that collect funds to donate to political campaigns or to lobby for legislation or policies beneficial to their interests.

Lobbying

The act of influencing decisions made by officials in the government or other institutions, often carried out by special interest groups or lobbyists.