Multiple Choice
The government purchases component of aggregate demand includes
I. all purchases by government agencies of goods and services produced by firms.
II. direct production by government agencies themselves.
III. government expenditures on transfer payments.
A) I only
B) I and II only
C) I and III only
D) I, II, and III
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Which of the following describes a discretionary
Q15: Explain the concept of supply-side economics. Could
Q16: Suppose the economy experiences a recessionary gap.
Q17: Contractionary fiscal policy will lead to a(n)<br>A)
Q18: Suppose the economy experiences an inflationary gap.
Q20: Government tax and expenditure policies that affect
Q21: According to Professor Baotai Wang who examined
Q22: All of the following are examples of
Q23: Suppose the government increases the corporate income
Q24: Use the following to answer questions .<br>Exhibit: