Which of the following statements is incorrect?
A) Taxes and transfer payments affect aggregate demand by changing disposable income.
B) An increase in disposable income leads to a decrease in aggregate demand.
C) Fiscal policy is the attempt to influence the economy using taxes, transfer payments, and government expenditures.
D) Government expenditures affect aggregate demand directly because government expenditures are a component of aggregate demand.
Correct Answer:
Verified
Q186: People expect their incomes will decrease next
Q187: People expect that the El Nino effect
Q188: A decrease in government transfer payments
A) increases
Q189: A rise in the expected future inflation
Q190: A decrease in expected future income
A) increases
Q192: An increase in government expenditure on goods
Q193: Which of the following shifts the aggregate
Q194: Which of the following increases aggregate demand?
A)
Q195: Higher taxes
A) increase the aggregate quantity demanded.
B)
Q196: Which of the following shifts the aggregate
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