1. If the government reduces spending A) the IS curve will shift to the right B)...

 

Transcribed Image Text:

1. If the government reduces spending A) the IS curve will shift to the right B) output will increase if interest rates remain fixed C) consumption will increase D) all of the above 2. If the government cuts taxes A) disposable income falls B) planned expenditures rise C) the IS curve shifts to the left D) all of the above 3. Qualitatively, an increase in government purchases has the same impact as an increase in autonomous A) consumption B) investment C) net exports D) none of the above 4. Actual expenditure is to planned expenditure as A) desire; accomplishment B) aggregate demand; aggregate supply C) output; income D) observed; theoretical 5. Total aggregate demand includes A) planned investment spending B) consumption expenditures C) net exports D) all of the above is to 1. If the government reduces spending A) the IS curve will shift to the right B) output will increase if interest rates remain fixed C) consumption will increase D) all of the above 2. If the government cuts taxes A) disposable income falls B) planned expenditures rise C) the IS curve shifts to the left D) all of the above 3. Qualitatively, an increase in government purchases has the same impact as an increase in autonomous A) consumption B) investment C) net exports D) none of the above 4. Actual expenditure is to planned expenditure as A) desire; accomplishment B) aggregate demand; aggregate supply C) output; income D) observed; theoretical 5. Total aggregate demand includes A) planned investment spending B) consumption expenditures C) net exports D) all of the above is to

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 If the government reduces spending D ... View the full answer