Which of the following policies shifts the AD curve the farthest leftward?
A) an increase in taxes of $10 billion
B) a decrease in government expenditure of $10 billion
C) a simultaneous increase in government expenditure of $10 billion and taxes of $10 billion
D) a decrease in taxes of $10 billion
E) an increase in government expenditure of $10 billion
Correct Answer:
Verified
Q77: Discretionary fiscal policy
A)requires action by Parliament.
B)is triggered
Q78: A cyclical deficit occurs when
A)there is a
Q79: During an expansion, revenues
A)decrease and government outlays
Q80: Use the figure below to answer the
Q81: Choose the correct statement.
A)When an economy is
Q83: The effect of a change in taxes
Q84: The economy is in a recession, the
Q85: If the budget deficit is $50 billion
Q86: Expansionary fiscal policy
A)increases long- run aggregate supply.
B)decreases
Q87: If real GDP is less than potential
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