1. How does a change in taxes primarily affect aggregatedemand? a. A tax change

Question

1. How does a change in taxes primarily affect aggregatedemand?
a. A tax change alters exports and net exports.
b. A tax change alters investment by an equal and oppositeamount.
c. A tax change alters disposable income and consumptionspending.
d. A tax change alters government purchases by an equal amount.
e. A tax change alters saving by an equal amount.

2. Expansionary fiscal policy consists of:
a. increased government purchases, increased taxes, increasedtransfer payments.
b. decreased government purchases, decreased taxes, decreasedtransfer payments.
c. increased government purchases, increased taxes, decreasedtransfer payments.
d. increased government purchases, decreased taxes, increasedtransfer payments.

3. Budget surpluses exist when:
a. government spending exceeds its tax revenues.
b. government tax revenues exceed its spending.
c. government spending equals its tax revenues.
d. expansionary fiscal policies increase real GDP and the pricelevel.

Explanation / Answer

2. d 3. b

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.