If the Government Starts a New Program Where It Buys

question 38

Multiple Choice

If the government starts a new program where it buys every family that lives in Florida a new air conditioner,one may argue this could lead to

• A) a budget surplus.
• B) a shift in aggregate supply.
• C) supply-side fiscal policy.
• D) a savings shift.
• E) crowding-out.

---

Definitions:

Intangibles Purchase

The act of acquiring non-physical assets such as licenses, patents, or copyrights that provide the purchaser with exclusive rights or significant value.

R&D Expense

Costs associated with the research and development activities of a company, aimed at the creation of new products or enhancement of existing products.

IFRS

International Financial Reporting Standards; a set of global accounting standards that provide guidance on how to report financial events.

GAAP

GAAP refers to the widely recognized set of accounting norms and guidelines followed in the U.S. for preparing financial statements.