In a Macro Model with a Constant Price Level,an Increase

question 76

Multiple Choice

In a macro model with a constant price level,an increase in government purchases will cause the AE curve to shift

• A)downward and the AD curve to shift to the right.
• B)downward and the AD curve to shift to the left.
• C)downward and a movement to the right along the AD curve.
• D)upward and the AD curve to shift to the left.
• E)upward and the AD curve to shift to the right.

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Definitions:

Protestant Ethic

The concept introduced by Max Weber suggesting that the Calvinist emphasis on hard work, thrift, and efficiency in one's worldly calling was a driving force behind the development of capitalism.

God's Chosen

A belief held within some religious groups that they have been specifically chosen by a divine power for a particular purpose.

Works Hard

Exerting significant effort or diligence in performing tasks or achieving goals.

Eclectic Synthesis

The process of combining elements from various theories, styles, or ideas to form a coherent whole.