How does a change in investment spending affect aggregate demand?
What will be an ideal response?
Government spending might change for any of a number of reasons, including a change in priorities resulting from a change in decisions by elected government officials. If government spending increases, aggregate demand is likely to increase. If government spending decreases, aggregate demand is likely to decrease.
You might also like to view...
John is a user of WhatsApp Messenger. When he initially started using it, the messenger was not very popular among his friends and John did not spend much time on it
As more and more of John's friends started using the messenger, the messenger's value to John increased substantially. What kind of externality is reflected in this example?
__________ explores the roles of different level of government and the ways in which they relate to each other.
A. Federal system B. Club model C. Centralization D. Fiscal federalism
Which of the following is true? a. A person's wage or salary is his or her opportunity cost of leisure
b. Any time that is spent working for a paid job is known as the time spent in leisure. c. An individual's decision to work in a low paying job or a high paying job is known as the labor-leisure tradeoff. d. A person who works more also always get to enjoy more leisure time. e. If an individual labor supply curve bends backward at some high wage, then the market supply curve also bends backward.
12. At the national level, how many members are appointed by the president of the United States and confirmed by the Senate to serve on the Board of Governors?
a. 5 b. 6 c. 7 d. 8