An economic expansion leads to ________ needs-tested spending and ________ tax revenues.   a. lower; lower b. lower; higher c. higher; higher d. higher; lower e. lower; no change in

Suppose that there’s a recessionary gap, and the country wishes to produce its potential output. Which of the following policy initiatives might help it reach this goal? A.the government increases taxes on consumers and corporations. B.the government initiates policies that encourage private investment spending. C.the government cuts spending programs. D.the government initiates policies that discourage private investment spending.

Economics An economy is experiencing a high rate of inflation. The government wants to reduce GDP by $80 billion to reduce inflationary pressure. The MPC is .8. By how much should the government raise taxes to achieve its objective? Multiple Choice $9 billion $16 billion $20 billion $12 billion

If the government wants to increase real GDP levels, it could  A) decrease government expenditures and increase taxes.    B) increase government expenditures.    C) decrease government expenditures.    D) increase taxes.

If the government decreases taxes, disposable income does not change. falls. increases. This causes total consumer spending to not change. increase. decrease.

Q18

Which statement is false? Select one: a. If consumers and businesses both increase spending, everyone's incomes falls. b. Consumer spending is business income. c. Falling wages decrease demand in output markets. d. Business spending is consumer income. e. If consumers and businesses both increase spending, employment increases.

Along any given IS curve: a. government spending is fixed, but tax rates vary. b. tax rates are fixed, but government spending vary. c. both government spending and tax rates vary. d. both government spending and tax rates fixed.

(22) Assume that the economy begins in long-run equilibrium and that the federal reserve decides to use open market operations to sell bonds. In the short run, what happens to the level of GDP? Group of answer choices (A) It goes down. (B) It goes up. (C) It stays the same.

Total planned expenditure is also called ______. a. Exports minus imports b. Aggregate demand c. Aggregate supply d. Revenues greater than expenses