If There Is Complete Crowding Out as a Result of an Increase

question 77

Multiple Choice

If there is complete crowding out as a result of an increase in government spending there will be

• A) a decrease in aggregate demand.
• B) no change in aggregate demand.
• C) an increase in aggregate demand.
• D) a downward movement along the aggregate demand curve.

---

Definitions:

Ethnomethodology

A sociological approach focusing on how people use everyday conversation and gestures to construct a common sense of reality.

Phenomenology

A philosophical movement that emphasizes the direct study of experience and consciousness to understand the essence of phenomena.

Critique

The practice of detailed analysis and evaluation of ideas, texts, or artistic works, often to expose assumptions and implications.

Structural Functionalist

A perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability.