In the Aggregate Expenditures Model,an Increase in Government Spending May

question 66

Multiple Choice

In the aggregate expenditures model,an increase in government spending may:

• A) decrease real GDP.
• B) increase output and employment.
• C) shift the aggregate expenditures schedule downward.
• D) reduce the size of the inflationary gap.

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Definitions:

Destinations

Refers to the end locations where people, goods, or information are aimed to reach.

Degenerate Problems

In mathematical optimization, these are problems where the solution involves degeneracy, which may affect the interpretation or analysis of the solution.

Feasible Solution

A possible and practical resolution or answer that meets all defined constraints.

Supply

The total amount of a product or service that is available for purchase at any given point in time.