A Temporary Increase in Government Spending ________, and a Permanent

question 108

Multiple Choice

A temporary increase in government spending ________, and a permanent increase in government spending ________.

• A) shifts the labor supply up; shifts the labor supply up
• B) shifts the labor supply up; has no impact on labor supply
• C) shifts the labor demand up; shifts the labor supply down
• D) has no impact on labor demand; shifts the labor supply down
• E) shifts the labor supply up; shifts the labor demand down

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Definitions:

Cash Payments

Cash payments refer to monetary transactions in which cash is used to settle the amount owed for goods or services.

Current Liabilities

Obligations or debts that a company is expected to pay off within a year, such as accounts payable and short-term loans.

Decreases

A reduction in quantity, size, or the overall level of an economic indicator or financial value.

Expenses With No Cash Outflows

Costs recognized in the accounting period that do not require an immediate cash outlay, such as depreciation.