Government activity affects aggregate demand by:
A) their purchases of goods and services only.
B) levying taxes and making transfer payments as well as purchasing goods and services.
C) changing the level of aggregate supply of goods and services.
D) establishing the rules within which a market economy must operate.
Correct Answer:
Verified
Q1: Recent data show that government expenditures in
Q2: In 2006, the total revenues in Canada:
A)
Q3: Which of the following statements is false?
A)
Q5: Which of the following is false?
A) AE=C+I+G+X-Z.
B)
Q6: If the MPC is 0.8 out of
Q7: When government spending increases and taxes do
Q8: An equilibrium income in an open economy
Q9: Other things remaining the same, an increase
Q10: If income tax rate increases:
A) disposable income
Q11: Other things constant, if the government imposes
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