The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.
A. an expansionary fiscal policy; an increase in government spending
B. a contractionary fiscal policy; a reduction in taxes
C. a contractionary fiscal policy; an increase in taxes
D. an expansionary fiscal policy; an increase in corporate taxes
Answer:A
The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.
A. an expansionary fiscal policy; an increase in government spending B. a contractionary fiscal policy; a reduction in taxes C. a contractionary fiscal policy; an increase in taxes D. an expansionary fiscal policy; an increase in corporate taxes
Explanation: Type: Multiple Choice