You Are Given the Following Information About Aggregate Demand at the Existing

question 213

Multiple Choice

You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $400 billion; (2) investment = $40 billion; (3) government purchases = $90 billion; and (4) net export = $25 billion.If the full-employment level of GDP for this economy is $600 billion, then what combination of actions would be most consistent with the goal of achieving full employment?

• A)increase government spending and taxes
• B)decrease government spending and taxes
• C)decrease government spending and increase taxes
• D)increase government spending and decrease taxes

---

Definitions:

Videoconferencing Tool

A software or application that facilitates virtual meetings or conferences through the internet, allowing participants to see, hear, and interact with each other in real-time.

Teleconferencing Tool

A digital platform or software that enables individuals to conduct meetings or presentations through electronic means, often with video capabilities.

Written Communication

The process of conveying messages or information through letters, emails, reports, or other types of texts.

Memos

Short for memorandums, these are concise written messages typically used within an organization to communicate policies, procedures, or official business.