Multiple Choice
If a "liberal" wanted to decrease aggregate demand, which of the following would he or she tend to favor?
A) An increase in government spending, because it will increase the size of the public sector.
B) A decrease in government spending, because it keeps the public sector small.
C) An increase in transfer payments, because it has a larger multiplier than tax changes.
D) An increase in taxes, because it makes the public sector larger.
Correct Answer:

Verified
Correct Answer:
Verified
Q178: Why did President George W.Bush feel the
Q179: Figure 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-2
Q180: Table 11-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Table 11-1
Q181: Government transfer payments act as automatic stabilizers
Q182: If personal income taxes are increased, disposable
Q184: Income tax acts as a shock absorber
Q185: What are the policies usually advocated by
Q186: President George W.Bush, who favored a smaller
Q187: Figure 11-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 11-1
Q188: Unemployment insurance is an example of<br>A)automatic stabilizer.<br>B)recessionary