When you compare the effects of government spending on aggregate demand with the effects of taxes on aggregate demand, the effects of government spending are
A. smaller.
B. larger.
C. the same.
D. impossible to predict.
Answer: B
You might also like to view...
The largest component of GDP is
A) gross private domestic investment. B) personal consumption expenditures. C) net exports of goods and services. D) government expenditure on goods and services.
Which of the following would most likely cause the movement from S 1 to S 2 ?
a. A much higher percentage of high school graduates seek jobs rather than go to
college.
b. There is an increasing trend among people in their fifties to retire early.
c. A well-publicized medical study motivates a large number of people to reduce their
work hours.
d. A country uses the profits from its nationalized oil industry to give an income subsidy
to all citizens.
What are two reasons why employees would prefer for their employer to pay for their health insurance rather than receiving increased wages and paying for their own health insurance?
What will be an ideal response?
Refer to the diagram, in which S 1 and D 1 represent the original supply and demand curves and S 2 and D 2 the new curves. In this market the indicated shift in supply may have been caused by:
A. an increase in the wages paid to workers producing this good.
B. the development of more efficient machinery for producing this commodity.
C. this product becoming less fashionable.
D. an increase in consumer incomes.