If the government reduces expenditure on goods and services by $30 billion, then aggregate demand
A) increases by more than $30 billion and real GDP increases.
B) decreases by $30 billion and real GDP decreases.
C) increases by $30 billion and real GDP increases.
D) increases and potential GDP increases.
E) decreases by more than $30 billion and real GDP decreases.
Correct Answer:
Verified
Q70: An income tax on labor income decreases
Q71: Needs-tested spending
A)increases as real GDP increases.
B)makes recessions
Q72: Q73: Since 2000, the U.S. government has generally Q74: The magnitude of the tax multiplier is Q76: The government collects tax revenues of $100 Q77: The structural deficit or surplus is the Q78: If the federal government has a budget Q79: Automatic stabilizers are defined as Q80: In the labor market, the income tax
A)difference
A)actions taken by
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