Column A: Objective for Aggregate Demand Write increase or decrease if you wish to increase or decrease aggregate demand. Column B: Action on Taxes Write increase or decrease if you wish to increase or decrease taxes. Column C: Action on Government Spending Write increase or decrease if you wish to increase or decrease government spending. Column D: Effect on Government Budget Write deficit if you wish to increase or the deficit (or reduce the surplus). Write surplus if you wish to decrease the deficit (or increase the surplus). (A) (B) (C) (D) OBJECTIVE FOR АCTION ACTION ON EFFECT AGGREGATE ON GOVERNMENT ON DEMAND TAXES SPENDING BUDGET (6) Business sales and investment are rapidly expanding. Many economists forecast strong inflation ahead. (7) Inflation persists while unemployment remains above 6%. 8.

Column A: Objective for Aggregate Demand Write increase or decrease if you wish to increase or decrease aggregate demand. Column B: Action on Taxes Write increase or decrease if you wish to increase or decrease taxes. Column C: Action on Government Spending Write increase or decrease if you wish to increase or decrease government spending. Column D: Effect on Government Budget Write deficit if you wish to increase or the deficit (or reduce the surplus). Write surplus if you wish to decrease the deficit (or increase the surplus). (A) (B) (C) (D) OBJECTIVE FOR АCTION ACTION ON EFFECT AGGREGATE ON GOVERNMENT ON DEMAND TAXES SPENDING BUDGET (6) Business sales and investment are rapidly expanding. Many economists forecast strong inflation ahead. (7) Inflation persists while unemployment remains above 6%. 8.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter17: Federal Deficits, Surpluses, And The National Debt

Section: Chapter Questions

Problem 7SQP

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Question

Column A: Objective for Aggregate Demand
Write increase or decrease if you wish to increase or decrease aggregate demand.
Column B: Action on Taxes
Write increase or decrease if you wish to increase or decrease taxes.
Column C: Action on Government Spending
Write increase or decrease if you wish to increase or decrease government spending.
Column D: Effect on Government Budget
Write deficit if you wish to increase or the deficit (or reduce the surplus).
Write surplus if you wish to decrease the deficit (or increase the surplus).
(A)
(B)
(C)
(D)
OBJECTIVE FOR
АCTION
ACTION ON
EFFECT
AGGREGATE
ON
GOVERNMENT
ON
DEMAND
TAXES
SPENDING
BUDGET
(6) Business sales
and investment are
rapidly expanding.
Many economists
forecast strong
inflation ahead.
(7) Inflation persists
while
unemployment
remains above 6%.
8
(8) A serious flu-like
illness is now a
pandemic. Forty-
two states report
many deaths. Many
nations also
affected.

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