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

question 183

Multiple Choice

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

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

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Definitions:

Alcohol

A psychoactive substance that is the active ingredient in drinks such as beer, wine, and spirits, causing changes in mood, perception, and behavior when consumed.

GABA

Gamma-Aminobutyric Acid, the primary inhibitory neurotransmitter in the brain, playing a role in reducing neuronal excitability throughout the nervous system.

Excessive Daytime

A condition characterized by an overwhelming feeling of drowsiness and a lack of energy during daylight hours, often due to inadequate sleep quality or quantity.

Narcolepsy

Sleep disorder in which a person falls immediately into REM sleep during the day without warning.