If the government were to decrease its spending, it would expect aggregate demand to:
A) fall, and thus GDP to fall.
B) rise, and thus GDP to fall.
C) fall, and thus GDP to rise.
D) rise, and thus GDP to rise.
Correct Answer:
Verified
Q10: One way fiscal policy affects aggregate demand
Q11: If the government were to increase its
Q12: One way fiscal policy affects aggregate demand
Q13: Fiscal policy most directly affects the economy
Q14: Which model is used to evaluate the
Q16: By 2016, the dollar value of the
Q17: If the government wished to shift aggregate
Q18: The model of aggregate demand and aggregate
Q19: By 2012, the dollar value of the
Q20: Which of the following is not true
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