Suppose the federal government is considering alternatives to increase the level of real GDP in order to reduce unemployment.It can only do one of the following.Which will have the smallest impact on the federal budget?
A) Decreasing transfer payments
B) Increasing government spending
C) Increasing transfer payments
D) Decreasing government spending
Correct Answer:
Verified
Q116: Figure 11-1 Q117: The Japanese economy is stuck in a Q118: Transfer payments are income that is Q119: Expansionary fiscal policy can cause a rise Q120: If Congress votes to increase government purchases Q122: Supply-side economists Q123: To eliminate an inflationary gap, the expenditure Q124: One of the practical issues in the Q125: A "liberal" would most likely argue in Q126: Compared to an economy's self-correcting mechanism, active
A)earned but
A)favor a smaller government.
B)favor higher marginal
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