Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, one solution proposed to deal with the rising expenses of government entitlement programs is to raise taxes. An increase in taxes to help cover the rising expenses of entitlement programs would:
A. increase aggregate demand, shifting the AD curve to the right.
B. increase aggregate demand, shifting the AD curve to the left.
C. decrease aggregate demand, shifting the AD curve to the right.
D. decrease aggregate demand, shifting the AD curve to the left.
Answer: D
You might also like to view...
Production points inside the PPF are
A) efficient but not attainable. B) efficient and attainable. C) inefficient and not attainable. D) inefficient and attainable.
Managers should do more of an activity if it adds more to revenue than it adds to cost
Indicate whether the statement is true or false
The nominal interest rate is eight percent and the consumer price index rises from 140 to 147 . What is the real interest rate?
At which interest rate is the present value of $145.80 two years from today equal to $125 today?
a. 2 percent b. 4 percent c. 6 percent d. 8 percent