Decreasing government spending ________ the price level and ________ equilibrium real GDP.
A) decreases; increases
B) increases; decreases
C) increases; increases
D) decreases; decreases
Correct Answer:
Verified
Q62: Which of the following is considered contractionary
Q63: Tax increases on business income decrease aggregate
Q64: Figure 16-3 Q65: Expansionary fiscal policy involves increasing government purchases Q66: Contractionary fiscal policy to prevent real GDP Q68: Lowering the individual income tax rate will Q69: If the economy is growing beyond potential Q70: The problem causing most recessions is too Q71: Figure 16-4 Q72: Figure 16-2 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
