The basic equation of national income accounting is GDP = C + I + G + X - IM. When the government uses fiscal policy to make changes to taxes and transfers, this policy primarily affects:
A) IM.
B) I.
C) C.
D) X.
Correct Answer:
Verified
Q5: Which example does NOT illustrate government purchases
Q6: Which example does NOT illustrate government transfers?
A)
Q7: The federal government's LARGEST source of revenue
Q8: If the actual output lies below potential
Q9: Government payments to households for which no
Q11: Spending for Medicare and Medicaid accounts for
Q12: Which source of tax revenue is the
Q13: Consumer spending will likely rise if:
A) government
Q14: Which factor is a government transfer?
A) wages
Q15: A change in taxes or a change
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