Multiple Choice
Changes in government purchases affect planned spending ________, and changes in taxes and/or transfers affect planned spending ________.
A) directly; directly
B) directly; indirectly
C) directly; not at all
D) indirectly; indirectly
Correct Answer:

Verified
Correct Answer:
Verified
Q89: The largest component of planned aggregate expenditure
Q90: In Macroland, autonomous consumption equals 100, the
Q91: Data on output and planned aggregate expenditure
Q92: In the basic Keynesian model, an increase
Q93: For an economy starting at potential output,
Q95: For an economy starting at potential output,
Q96: Refer to the accompanying figure. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6547/.jpg"
Q97: In the short run, with predetermined prices,
Q98: Government policies intended to decrease planned spending
Q99: Refer to the accompanying figure. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6547/.jpg"