Multiple Choice
To counteract the effect of automatic stabilisers during a recession and keep the budget balanced, the federal government would need to ________ government spending, or ________ taxes, which would ________ aggregate demand.
A) increase; decrease; increase
B) increase; increase; reduce
C) decrease; decrease; increase
D) decrease; increase; reduce
Correct Answer:
Verified
Correct Answer:
Verified
Q126: Refer to Figure 13.5 for the following
Q127: In 2015/2016, after social security and welfare
Q128: Which is the largest source of federal
Q129: The structural budget deficit calculates the budget
Q131: Which of the following is a government
Q132: 'Fiscal policy' (discretionary fiscal policy)is defined as
Q133: Refer to Figure 13.3 for the following
Q134: Explain why accurately timing the fiscal policy
Q135: Which of the following is considered 'expansionary
Q262: The federal government debt _ when the