Multiple Choice
An increase in government purchases of $100 billion will shift the aggregate-demand curve to the:
A) left by more than $100 billion
B) left by more or less than $100 billion
C) right by more than $100 billion
D) right by more or less than $100 billion
Correct Answer:

Verified
Correct Answer:
Verified
Q9: Suppose government purchases increase by $100 billion,
Q10: When the economy goes into a recession,
Q11: The global financial crisis has shown that
Q12: The notion that when the government increases
Q13: What are the key determinants of the
Q15: An increase in Australia's marginal propensity to
Q16: For a given fixed price level, an
Q17: An increase in money supply shifts the
Q18: According to the theory of liquidity preference,
Q19: Changes in government spending affect saving and