Assuming the Multiplier Effect but No Crowding-Out or Investment-Accelerator Effects,what

question 170

Multiple Choice

Assuming the multiplier effect but no crowding-out or investment-accelerator effects,what is the effect of a $400 billion increase in government expenditures on the aggregate demand?

• A) It shifts the aggregate demand right by more than $400 billion.
• B) It shifts the aggregate demand right by less than $400 billion.
• C) It shifts the aggregate demand left by more than $400 billion
• D) It shifts the aggregate demand left by less than $400 billion.

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Definitions:

Absorbed Poison

A toxic substance that has been taken into the body through absorption, often through the skin or gastrointestinal tract, leading to potential harm or illness.

Contaminated Clothing

Clothing that has been exposed to harmful substances, which may include bacteria, viruses, chemicals, or radioactive materials, posing a risk to health.

Ingested Poison

A harmful substance that has been swallowed, posing risk of harm or injury to health.

Severe Head Injury

A major trauma to the head that can result in significant damage to the brain, often requiring immediate medical intervention.