If the Government Starts a New Program Where It Buys

question 38

Multiple Choice

If the government starts a new program where it buys every family that lives in Florida a new air conditioner,one may argue this could lead to

• A) a budget surplus.
• B) a shift in aggregate supply.
• C) supply-side fiscal policy.
• D) a savings shift.
• E) crowding-out.

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Definitions:

Demand for DVDs

The total quantity of DVDs that consumers are willing and able to purchase at a given price level over a specific period of time.

Movie Tickets

Certificates or electronic codes that grant the holder the right to admission for viewing a film at a cinema.

Complementarity

A relationship between two goods where the use of one increases the value or demand for the other.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.