The effect of an increase in government spending on real GDP is reduced if the
A) smaller the crowding-out effect.
B) larger the rate of inflation.
C) smaller the percentage of government spending financed by tax increases.
D) flatter the aggregate supply curve.
E) larger the government budget surplus.
Correct Answer:
Verified
Q13: Which of the following statements about taxation
Q14: Taxes affect aggregate demand
A) indirectly by changing
Q15: Government spending equals the sum of these
Q16: If the government wants to close a
Q17: To close a GDP gap, government should
A)
Q19: The misery index is defined as
A) potential
Q20: Which of the following statements is false?
A)
Q21: When taxes go down, then output increases,
Q22: Once Congress receives the president's budget, the
Q23: The fiscal year for the U.S. government
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