An Increase in Government Purchases Must Always Be Accompanied by an Increase

question 73

True/False

An increase in government purchases must always be accompanied by an increase in autonomous net taxes to boost aggregate demand.

---

Definitions:

Managerial Policies

Guidelines, rules, and procedures established by an organization's management to dictate and guide decision-making and operational practices.

Balance Sheet

A financial statement that shows assets and liabilities at one point in time.

Profits

The financial gain realized when the revenues of a business exceed the costs and expenses related to its operation.

Losses

The negative difference between the cost of investment and its current value or selling price.