An Increase in Government Purchases Will Increase Aggregate Demand Because

question 45

Multiple Choice

An increase in government purchases will increase aggregate demand because

• A)government expenditures are a component of aggregate demand.
• B)consumption expenditures are a component of aggregate demand.
• C)the decline in the price level will increase demand.
• D)the decline in the interest rate will increase demand.

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Definitions:

Competitive Intelligence

The gathering and analysis of information about competitors and the business environment to support strategic decision-making.

Foreknowledge

Prior knowledge or awareness of an event or situation before it happens, often based on experience or intuition.

Upcoming Promotions

Planned marketing activities or sales incentives that are scheduled to take place in the near future to boost demand or awareness for a product or service.

Exploratory Study

A form of research conducted to gain insight and understanding about an issue or topic without specific expectations or hypotheses.