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

---

Definitions:

Indifference Curves

Graphical representations in economics showing different combinations of two goods that provide the same level of satisfaction or utility to a consumer.

L-shaped

Referring to a graph shape, usually indicative of certain economic recovery patterns, representing a rapid fall followed by a prolonged period of stagnation.

Indifference Curves

Graphical representations in microeconomics to illustrate different combinations of two goods that provide a consumer with the same level of satisfaction or utility.

Equation

A mathematical statement that asserts the equality of two expressions, typically used in modeling economic relationships.