Which of the following items is counted as part of government purchases?
a. The federal government pays $2,000 in Social Security benefits to a retired person.
b. The city of Athens, Ohio pays $10,000 to a tree-trimming firm to trim trees along city boulevards.
c. The state of Nebraska pays $1,000 to help a low-income family pay its medical bills.
d. All of the above are correct.
b
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In the figure above, a movement from point A to point C can be the result of
A) an increase in the government budget deficit. B) a decrease in expected profit. C) a rise in the real interest rate. D) an increase in expected profit. E) a fall in the real interest rate.
In the long run, fiscal policy influences
a. saving, investment, and growth; in the short run, fiscal policy primarily influences technology and the production function. b. saving, investment, and growth; in the short run, fiscal policy primarily influences the aggregate demand for goods and services. c. technology and the production function; in the short run, fiscal policy primarily influences saving, investment, and growth. d. the aggregate demand for goods and services; in the short run, fiscal policy primarily influences technology and the production function.