Exam 27: Managing Aggregate Demand: Fiscal Policy

Do policy makers know the level of unemployment that is associated with "full employment"?

When an investor sells an asset for a profit, then that profit is called a capital gain.

Conservatives usually favor increasing government spending to increase aggregate demand.

How does an increase in taxes affect the expenditure schedule?

The central idea of supply-side tax cuts is that certain types of tax cuts will increase

Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?

The multiplier is reduced by an income tax because an income tax reduces the fraction of each dollar of GDP that consumers actually receive and spend.