Assume Congress enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:
a. $500 billion decrease in aggregate demand.
b. $500 billion increase in aggregate demand.
c. $1,000 billion increase in aggregate demand.
d. $1,000 billion decrease in aggregate demand.
b
Economics
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Social Security is a pure transfer program because
A) it transfers funds from current workers to the poor. B) the government transfers funds from middle-income workers to welfare recipients. C) current payroll taxes are used to pay the eligible retirees. D) the government subsidizes the medical bill of the poor.
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Labor-saving technological advances increase the marginal productivity of labor
a. True b. False Indicate whether the statement is true or false
Economics