Which of the following government acts will most likely lead to an increase in the level...
Which of the following government acts will most likely lead to an increase in the level of aggregate demand? A reduction in:
public spending on social goods and infrastructure
the capital gains tax
foreign-based purchases
direct investments transfer payments
Homework Answers
Direct investments transfer payments - is correct
Direct investment and transfer payments increase aggregate demand.
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Which of the following government acts will most likely lead to
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price level.
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a. Which of the following events would likely cause the decrease
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Personal consumption falls as workers become concerned about
future employment prospects.
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Gross investment increases as capital units become fully
utilized.
b. A decrease in aggregate demand is of policy concern due to
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unemployment rate.
productivity of workers.
price level.
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