If government expenditure increases by $200 billion and taxes simultaneously increase by $200 billion, then aggregate demand
A) remains the same.
B) decreases no matter what happens to aggregate supply.
C) increases no matter what happens to aggregate supply.
D) increases only if aggregate supply increases.
E) increases only if aggregate supply decreases.
C
Economics
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The "principle of rival consumption" applies to which of the following?
A) national defense B) the free-rider problem C) the exclusion principle D) a private good
Economics
Which statement is true?
A. The government sector of GDP is larger than the consumption sector. B. The federal government spends about five percent of our GDP on foreign aid. C. The federal government spends less on Social Security than it does on defense. D. None of these statements are true.
Economics