"Premier Liu Chao-shiuan announced Tuesday a government plan to distribute NT$82.9 billion (US$2.51 billion) in consumption coupons to Taiwan's citizens in a bid to stimulate ...economic growth." The Premier's plan to boost economic growth by boosting consumption
A) will work because employment will increase.
B) will work because there will be a movement out along Taiwan's aggregate production function.
C) will not work because real GDP per person will decrease.
D) will not work because economic growth is boosted by labor productivity, not consumption.
Correct Answer:
Verified
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