Changes in Government Purchases Affect Planned Aggregate Expenditure _________ and Changes

question 111

Multiple Choice

Changes in government purchases affect planned aggregate expenditure _________ and changes in taxes and transfer payments affect planned aggregate expenditure _________.

• A) directly;directly
• B) directly;indirectly
• C) directly;not at all
• D) indirectly;indirectly
• E) indirectly;directly

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Definitions:

Infinite Slope

An idealized concept in mathematics and economics indicating a line that has an immeasurable steepness or an undefined gradient.

Negative Slope

Negative slope indicates a decrease in the variable on the y-axis as the variable on the x-axis increases, often seen in graphs representing inverse relationships.

Positive Slope

A line or curve on a graph that moves upwards from left to right, indicating a positive relationship between two variables.

Variable on the Vertical Axis

In a graph, the variable that is represented on the vertical (y) axis, which is typically the dependent variable in an analysis.