Use the graph to answer questions
-**Which of the following statements is true?
A) Increasing taxes while decreasing government spending would result in a shift of the aggregate demand from AD1 to AD2.
B) Decreasing taxes would result in a shift of the aggregate demand from AD2 to AD1.
C) Increasing taxes would result in a shift of the aggregate demand from AD3 to AD4.
D) Decreasing taxes while increasing government spending would result in a shift of the aggregate demand from AD3 to AD4.
Correct Answer:
Verified
Q19: Discretionary accounts for approximately _ percent of
Q20: Nondiscretionary government spending accounts for approximately what
Q21: Use the graph to answer questions
Q22: Discretionary fiscal policy
A)does not require specific action
Q23: Federal policy changes that uses automatically changes
Q25: Fiscal policy used to expand aggregate demand
Q26: Contractionary fiscal policy
A)includes cuts in government spending
Q27: Use the graph to answer questions
Q28: Use the graph to answer questions
Q29: A potential tradeoff for reducing pressure on
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents