What effect would an increase in government purchases,combined with an increase in taxes,have on AD?
A) It would leave AD unchanged.
B) It would decrease AD.
C) It would have an indeterminate effect on AD.
D) It would increase AD.
Correct Answer:
Verified
Q3: What type of tax is designed to
Q4: After income taxes,what is the next largest
Q5: What has the government traditionally used to
Q6: What does expansionary fiscal policy consist of?
A)decreased
Q7: What is the largest single component of
Q9: If government policy makers are worried about
Q10: What action might the government take if
Q11: You are a member of Parliament when
Q12: What does contractionary fiscal policy consist of?
A)increased
Q13: When are budget deficits created?
A)when interest on
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents