Which of the Following Government Policies Would Increase Aggregate Demand

question 14

Multiple Choice

Which of the following government policies would increase aggregate demand?

• A)a deficit in the government budget
• B)a stimulation of investment through an increase in taxes
• C)a stimulation of consumption through an increase in taxes
• D)a surplus in the government budget
• E)a decrease in government spending

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Definitions:

New Project

An initiative or plan that is undertaken to achieve specific goals, often involving tasks that have not been done before.

Start-up Operation

The initial actions and processes involved in establishing and beginning the functioning of a new business or project.

Administrative Activities

Tasks related to the management and organization of a business or institution, including planning, directing, and overseeing operations.

Gatekeeper

An individual or entity that controls access to something, often information or resources.