How Does an Increase in Government Spending Affect the Aggregate

question 230

Multiple Choice

How does an increase in government spending affect the aggregate expenditure line?

• A)It shifts the aggregate expenditure line upward.
• B)It shifts the aggregate expenditure line downward.
• C)It increases the slope of the aggregate expenditure line.
• D)It decreases the slope of the aggregate expenditure line.

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Definitions:

Busing

The transportation of students to schools outside their local school districts as a means of achieving racial integration in public schools.

Domestic Policy

Governmental policies addressing the internal matters of a country, such as education, healthcare, and infrastructure.

Liberal Agenda

A set of political and social objectives associated with liberalism, typically emphasizing individual rights, equality, and government intervention for social welfare.

Conservative Goals

Objectives typically pursued by conservative political or social movements, emphasizing tradition, stability, limited government intervention, and free-market principles.