Multiple Choice
Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________.
A) aggregate demand; government spending
B) aggregate supply; taxes
C) aggregate demand; taxes
D) aggregate supply; government spending
Correct Answer:

Verified
Correct Answer:
Verified
Q292: Crowding out refers to a decline in
Q293: Figure 16-8 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 16-8
Q294: The total value of U.S.Treasury bonds outstanding
Q295: A change in consumption spending caused by
Q296: Table 16-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Table 16-4
Q298: Tax reduction and simplification should _ long-run
Q299: If the absolute value of the tax
Q300: A decrease in the marginal income tax
Q301: The double taxation problem occurs because households
Q302: Contractionary fiscal policy to prevent real GDP