- government service contracts
- federal government help
- household goods shipping
- calculate percentage salary increase
A. increase GDP by the same amount as a $75 billion increase in government purchases of goods and services.
B. increase GDP by a smaller amount than would a $75 billion increase in government purchases of goods and services. (what I put)
C. not affect aggregate demand, as it will only shift aggregate supply.
D. increase the marginal propensity to consume, thereby decreasing the value of the multiplier.
A requirement to have an annually balanced federal budget would mean that:
A. there would be no more recessionary gaps or inflationary gaps.
B. the role of taxes and transfers as automatic stabilizers would be undermined.
C. total household disposable income would be the same every year.
D. actual GDP would equal potential GDP every year. (what I put)
B. increase GDP by a smaller amount than would a $75 billion increase in government purchases of goods and services. (what I put)
C. not affect aggregate demand, as it will only shift aggregate supply.
D. increase the marginal propensity to consume, thereby decreasing the value of the multiplier.
A requirement to have an annually balanced federal budget would mean that:
A. there would be no more recessionary gaps or inflationary gaps.
B. the role of taxes and transfers as automatic stabilizers would be undermined.
C. total household disposable income would be the same every year.
D. actual GDP would equal potential GDP every year. (what I put)
A $75 billion tax cut will:?
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