Which of the Following fiScal Policy Actions Is Most Likely

question 203

Multiple Choice

Which of the following fiscal policy actions is most likely to increase aggregate supply?

• A) an increase in personal income tax rates
• B) a reduction in interest rates that encourages consumers to purchase more durable goods
• C) an increase in transfer payments to unemployed workers
• D) an increase in government spending on infrastructure that increases private sector productivity

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Definitions:

Specialized Work

Work focused on a particular industry, sector, or area of expertise, requiring specific skills or knowledge.

Benefit Packages

A collection of non-wage compensations provided to employees in addition to their normal salaries or wages.

Formal Work Environment

A workplace setting that follows strict rules of conduct, dress code, and organizational structure.

Free Parking

An area or facility where vehicles can be parked without payment.