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

question 80

Multiple Choice

If a "conservative" wanted to increase aggregate demand, which of the following would 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:

Continuous-Process Production

Raw materials are continuously transformed by an automated system.

Lean Production

A manufacturing philosophy that emphasizes the minimization of waste and maximization of efficiency within the production process.

Competitive Advantage

Allows an organisation to deal with market and environmental forces better than its competitors.

Service Quality

An assessment of how well a service meets or exceeds customer expectations.