In discretionary fiscal policy, tax cuts are used to
A) stimulate aggregate demand.
B) dampen aggregate demand.
C) stimulate aggregate supply.
D) dampen aggregate supply.
Correct Answer:
Verified
Q23: If a $5,000 increase in income boosts
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Q26: If a $12,000 increase in income boosts
Q27: The equilibrium level of income is the
Q29: Unless the economy is beginning from a
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A) do not affect
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Q32: The size of the multiplier is
A) determined
Q33: Increases in the marginal propensity to consume
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