When Parliament Reduces Spending in Order to Balance the Budget

Multiple Choice

When Parliament reduces spending in order to balance the budget, what does it need to consider?

A) the short-run effects on aggregate demand and aggregate supply, and the long-run effects on saving and growth
B) the short-run effects on aggregate demand and aggregate supply, and the short-run effects on saving and growth
C) the long-run effects on aggregate demand and aggregate supply, and the long-run effects on saving and growth
D) the long-run effects on aggregate demand and aggregate supply, and the short-run effects on saving and growth