The Effect of an Increase in Government Spending on Real

question 47

Multiple Choice

The effect of an increase in government spending on real GDP will be lesser:

• A)the smaller the crowding-out effect.
• B)the smaller the percentage of government spending financed by tax increases.
• C)the larger the government budget surplus.
• D)the more rapidly money is converted into goods.
• E)the steeper the aggregate supply curve.

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Definitions:

Modern-Day Slavery

Forms of coercion, exploitation, or forced labor that exist in the current era, often hidden within global supply chains or industries.

Jungle Unionism

A term that may refer to aggressive, unregulated union activities or tactics, often implying a lawless or survival-of-the-fittest approach. Since this term is less recognized and might be considered outdated or pejorative, a direct contemporary equivalent might not exist, but it often denotes aggressive labor activism.

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.

Dues

Fees collected from members by unions or other organizations to fund operations, activities, and representational functions.