A $100 million decrease in government expenditure on goods and services leads to an even larger
Decrease in aggregate demand because of
A) discretionary fiscal policy.
B) the reinforcing effect of monetary policy.
C) induced changes in consumption expenditures.
D) induced changes in aggregate supply.
E) automatic fiscal policy.
Correct Answer:
Verified
Q121: An example of automatic fiscal policy is
A)expenditure
Q122: The supply-side effects show that a tax
Q123: Q124: Need-based spending -------------------- during an expansion and-------------------- Q125: Taxes that change with the level of Q127: If a tax cut increases people's labor Q128: When an economy faces an inflationary gap, Q129: If we look at the federal government Q130: If the nominal interest rate is 10 Q131: Ignoring any supply-side effects, if government expenditure
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