A decrease in government expenditures on goods and services is an example of .
A) increasing induced taxes
B) decreasing needs- tested spending programs
C) a fiscal policy designed to decrease real GDP
D) a fiscal policy designed to increase real GDP
Correct Answer:
Verified
Q154: A decrease in government expenditure shifts the
Q155: With a steep short- run aggregate supply
Q156: The government could increase aggregate demand by
Q157: In the short run, an increase in
Q158: The autonomous tax multiplier is
A) larger than
Q160: Assuming there are no supply- side effects,
Q161: Using fiscal policy, the best way to
Q162: An advantage of automatic stabilizers over discretionary
Q163: Suppose that the government decreases its expenditures
Q164: Suppose real GDP exceeds potential real GDP.
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