When the Demand and Supply of a Good Both Shift

question 87

Multiple Choice

When the demand and supply of a good both shift in the same direction and amount:

• A)​Price will change in the same direction as the shifts in supply and demand.
• B)​Price will change in the opposite same direction as the shifts in supply and demand.change in price and an increase in quantity exchanged.
• C)​Quantity exchanged will change in the same direction as that of the shifts in supply and demand.
• D)​Quantity exchanged will change in the opposite direction from that of the shifts in supply and demand

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Definitions:

Government Spending

The total amount of public funds that a government expends on its programs, services, and investments.

Real GDP

GDP, corrected for inflation, to yield a clearer picture of the economic growth and the actual scale of the economy.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations are required to pay to the government.

Government's Plan

A systematic arrangement of actions or strategies designed by a government to achieve specific outcomes or objectives.