Fiscal Policy Refers to the Idea That Aggregate Demand Is

question 54

Multiple Choice

Fiscal policy refers to the idea that aggregate demand is affected by changes in

• A)the money supply.
• B)government spending and taxes.
• C)trade policy.
• D)All of the above are correct.

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Definitions:

Economic Principles

Fundamental theories and concepts that underpin the study of economics, guiding the analysis of economic behavior.

Value Judgments

Assessments or opinions based on personal values, ethics, or tastes, rather than objective data.

Positive Economic Statement

An objective statement that can be tested or validated and is based on factual information.

Budget Line

A diagram that represents all possible pairs of two commodities that can be acquired with a given budget and product prices.