Which is NOT a way to accelerate aggregate demand during an economic slowdown?
A) temporary relief for unemployed borrowers
B) temporary investment tax credit
C) temporary reduction in the payroll tax
D) temporary reduction in the sales tax

Question

Quizplus · Accepted Answer

Temporary relief for unemployed borrowers is primarily aimed at providing direct financial support to individuals rather than stimulating overall economic demand directly. While it can have indirect effects on aggregate demand by increasing the purchasing power of unemployed individuals, it is not a direct method to accelerate aggregate demand compared to the other options which directly reduce taxes or provide incentives that encourage spending and investment.

Which Is NOT a Way to Accelerate Aggregate Demand During