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Suppose that the government spends more on a missile defense program. What does this do to aggregate demand? How is you answer affected by the presence of the multiplier, crowding-out, taxes, and investment-accelerator effects?
Retained Earnings Account
An equity account on the balance sheet that represents the accumulated net earnings not distributed to shareholders in the form of dividends.
Net Income
The final income of a company, achieved by subtracting expenses and taxes from the total revenues.
Income Tax Expense
The expense incurred by individuals or corporations due to taxable income, recognized in financial statements.
Corporation
A business organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock.
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