A decrease in business taxes will tend to:
A. increase aggregate demand and increase aggregate supply.
B. increase aggregate supply but not change aggregate demand.
C. increase aggregate demand but not change aggregate supply.
D. decrease aggregate supply and decrease aggregate demand.
Answer: A
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The term "cash transfer" means " cash or outright benefits given to individual as outright grants from the government?
A) True B) False
Generally, ________ motivates firms to enter an industry, while ________ motivates firms to exit an industry.
A. accounting profit; accounting loss B. economic profit; economic loss C. economic profit; accounting loss D. accounting profit; economic loss
Refer to Table 27-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action? A) real GDP and the unemployment rate B) potential GDP and the inflation rate C) real GDP and the inflation rate D) real GDP and potential GDP
Which of the following accounts for the largest percentage of output in the United States?
a. The government b. Business firms c. Households d. Banks e. The rest of the world