If a "Liberal" Wanted to Increase Aggregate Demand, Which of the Following

question 193

Multiple Choice

If a "liberal" wanted to increase aggregate demand, which of the following would she tend to favor?

• A)An increase in government spending, because it will increase the size of the public sector.
• B)A decrease in transfer payments, because it keeps the public sector small.
• C)An increase in transfer payments, because it has a larger multiplier than tax changes.
• D)A decrease in taxes, because it makes the public sector smaller.

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Definitions:

Prohibition

The legal act of forbidding certain behaviors or the manufacture, sale, and consumption of specific goods, often alcohol.

Genetic Explanations

Theories or reasons that attribute certain traits or behaviors to variations in an individual's DNA.

Social Explanations

Theories or reasoning that account for behaviors, phenomena, or events based on social factors and contexts.

White-Collar Crime

Non-violent criminal activities committed by individuals, typically during the course of their profession, involving deceit, fraud, or breach of trust.