Congress and the President have control of the tax system and government spending. As a result their policies will directly impact
A)aggregate supply.
B)residual demand.
C)aggregate demand.
D)the demand for loanable dollars.

Question

Quizplus · Accepted Answer

Congress and the President control government spending and tax policies, which directly affect the money available for consumer spending and business investment. Therefore, their policies affect aggregate demand, which is the total amount of goods and services that consumers and businesses want to purchase. This directly impacts economic growth and inflation, making C the correct choice.

Congress and the President Have Control of the Tax System