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

question 140

Multiple Choice

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

• A)An increase in government spending, because it has a larger multiplier than tax changes.
• 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:

Efforts-Expended Method

A accounting technique used to recognize revenue proportionally to the work or effort that has been completed on a project, commonly applied in long-term contracts.

Output Measures

Metrics or indicators used to quantify the level of products or services produced by a company or an industry.

Deposit Method

A method of accounting used for transactions where the receipt or payment of money precedes the delivery of goods or services, recognizing the transaction when the delivery occurs.

Revenue Recognition

The guideline in accounting that determines the precise situations where revenue should be recognized or reported.