How could an expansionary fiscal policy increase real GDP and lower the price level?
A) if aggregate supply decreases more than aggregate demand decreases
B) if aggregate supply decreases more than aggregate demand increases
C) if aggregate supply increases more than aggregate demand increases
D) if aggregate supply decreases less than aggregate demand decreases
E) if the aggregate supply increases equals the aggregate demand increase
Correct Answer:
Verified
Q64: Needs-tested spending
A)is directing government spending and taxes
Q65: Q66: When tax revenues-------------------- Q67: The law-making time lag is best described Q68: The federal budget is decided upon by Q70: An income tax on labor income decreases Q71: Needs-tested spending
A)minus; surplus
B)plus; surplus
C)divided by; surplus
D)minus;
A)increases as real GDP increases.
B)makes recessions
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