Which one of the following is TRUE about the effects of fiscal policy?

A) A decrease in government spending will decrease aggregate demand.
B) A tax change does not have any direct or indirect effects on aggregate demand.
C) A decrease government spending will increase aggregate supply.
D) An increase in government spending will reduce aggregate demand.


A

Economics

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Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded ________

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In the figure above, the opportunity cost of moving from point C to point D is

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A contract containing an adjustment provision which allows the supplier to recover a fraction of his additional costs when input prices cross a certain level, is considered efficient because:

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Economics