Everything else held constant, a balanced budget increase in government spending (that is, an increase in government spending that is matched by an identical increase in net taxes) will
A) increase aggregate demand, but not by as much as if just government spending increases.
B) increase aggregate demand by more than if just government spending increases.
C) not affect aggregate demand.
D) decrease aggregate demand.
A
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The output gap is the
A) difference in graduation levels between high school and college. B) difference between actual inflation and core inflation. C) percentage deviation of real GDP from potential GDP. D) percentage increase in the growth rate of real GDP. E) percentage increase in the growth rate of real GDP minus the unemployment rate.
If the quantity of walkie-talkies supplied increases by 5 percent when price increases by 12 percent, then
A) the walkie-talkie supply curve will shift to the right. B) the supply of walkie-talkies is elastic. C) the supply of walkie-talkies is inelastic. D) the walkie-talkie supply curve will shift to the left.
Frederick W. Taylor argued that worker efficiency could be improved by
a. analyzing in detail the movements required to perform a job. b. offering employees quarterly stock options. c. encouraging employees to form company unions. d. introducing to a 5-hour/day, 7-day/week schedule
When government corrects a market with an externality present by allowing participants to buy up to the point where their net benefit is zero, they must be:
A. imposing a tariff. B. offering a Coase tax. C. mandating a quota. D. imposing a tax.