Which of the following statements is correct?
A) Government purchases and taxes both increase real output.
B) Government purchases and taxes both decrease real output.
C) Government purchases increase, but taxes decrease, real output.
D) Government purchases decrease, but taxes increase, real output.
E) Neither government purchases nor taxes affect real output.
Correct Answer:
Verified
Q2: Q3: Automatic stabilizers operate in which of the Q4: In a certain year,an economy's potential output Q5: If Parliament adjusted our tax system so Q6: Which of the following statements best describes Q7: Assume that the economy is operating below Q8: Fiscal policy refers to the: Q9: Fiscal policy that increases the budget deficit Q10: The multiplier effect means that: Q11: The spending multiplier is calculated using the
A)manipulation of government
A)consumption is typically
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