If the government wants to engage in fiscal policy to increase real GDP, it could
A) increase government expenditure in order to increase short- run aggregate supply.
B) increase government expenditure in order to increase aggregate demand.
C) decrease government expenditure in order to increase short- run aggregate supply.
D) decrease government expenditure in order to decrease aggregate demand.
Correct Answer:
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Q13: Government transfer payments _ during expansions and
Q14: Using fiscal policy, to increase real GDP
Q15: If the government runs a surplus, the
Q16: Deliberate changes in government expenditures and taxes
Q17: Fiscal policy is the use of the
Q19: An example of a discretionary fiscal policy
Q21: If the government's outlays are $1.5 billion
Q22: Tax revenues
A)are fixed over time.
B)are autonomous.
C)are independent
Q23: Looking at the supply- side effects on
Q119: The Laffer curve is the relationship between
A)
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