The three ways government can alter aggregate demand are:
A. Agriculture subsidies, science & technology subsidies, and education grants.
B. Provide or deny food, clothing, and shelter.
C. Nationalization of private businesses, institution of price controls, and Pigouvian taxes on externalities.
D. Tax the Internet, close the bars, and ban football.
E. Government spending, tax policy, and transfer of income
Answer: E. Government spending, tax policy, and transfer of income
You might also like to view...
When a manager's bonuses are tied to multiple unrelated performance measures
a. we typically see the manager miss all goals by about the same amount b. we typically see the manager greatly exceeding some goals while missing others altogether c. we typically see the manager just meeting some goals while missing others by a wide margin d. we typically see the manager indifferent to the goals
According to the simple quantity theory of money in the AD-AS framework, the AD curve is
A) vertical. B) downward sloping. C) horizontal. D) upward sloping.