Because It Represents a Completely Separate Section of the Economy

question 153

True/False

Because it represents a completely separate section of the economy, government purchases do not often affect the other elements of aggregate demand: consumption, investment, and net exports.

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Definitions:

Taft-Hartley Act

A U.S. federal legislation from 1947 that limits the power and actions of trade unions.

First Amendment

A fundamental part of the United States Constitution that protects freedoms concerning religion, expression, assembly, and the right to petition.

Union Contract

A written agreement between an employer and a labor union that outlines the terms of employment, wages, benefits, and working conditions for unionized employees.

Strike

A stoppage of work by employees as a means of enforcing a demand made on their employers.