In order to move aggregate demand to the level consistent with full employment by means of fiscal policy, government officials who set the budget must know
A) the current level of aggregate demand.
B) the level of aggregate demand that would be consistent with full employment.
C) the size of the budget changes required to induce the appropriate-sized changes in aggregate demand.
D) all of the above.
D
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Which of the following uses of tax revenues collected by the government leads to increased capital deepening?
A) Medicare payments B) Social Security payments C) increased foreign aid D) building roads
Refer to Figure 12-5. What is the amount of the firm's fixed cost of production?
A) $5,400 B) $6,750 C) $8,100 D) It cannot be determined.
Interest deductibility does not provide an incentive for debt finance.
A. True B. False C. Uncertain
Which of the following items is included when computing M1?
a. Checking accounting entries. b. Currency in circulation. c. All of the above. d. None of the above.