Other Things Equal, a Decrease in Government Spending

question 92

Multiple Choice

Other things equal, a decrease in government spending:

• A)increases the slope of the aggregate demand curve.
• B)increases the domestic interest rate.
• C)decreases aggregate expenditures.
• D)shifts the aggregate demand curve to the right.
• E)increases the equilibrium level of GDP.

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Definitions:

Conditioning

A process of behavior modification by which a subject comes to respond in a desired manner to a previously neutral stimulus.

Learning Explanation

A theory or framework used to describe how experiences or exposure to certain stimuli result in a change in behavior or knowledge.

Anxiety Disorders

Mental health disorders characterized by significant feelings of anxiety and fear, affecting one's ability to function daily.

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks and persistent concern or behavior change regarding the attacks.