A Change in Government Transfers Shifts the Aggregate Demand Curve

question 333

Multiple Choice

A change in government transfers shifts the aggregate demand curve by _____ than a change in government spending for goods and services and has a _____ effect on real GDP.

• A)more; smaller
• B)more; larger
• C)less; smaller
• D)less; larger

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Definitions:

Debits

Entries on the left side of a double-entry accounting system that increase assets or expenses or decrease liabilities, equity, and income.

Credits

In accounting, credits refer to the side of an account that decreases assets or increases liabilities and equity.

Working Capital

The amount of a company's current assets minus its current liabilities, indicating the short-term liquidity position of the company.

Current Liabilities

Obligations or debts that a company is expected to pay off within one year or within its operating cycle, whichever is longer.