Tax Cuts Would Have the Same Affect on the Dynamic

question 104

Multiple Choice

Tax cuts would have the same affect on the dynamic aggregate demand curve as:

• A)Decreases in government purchases
• B)The Federal Reserve selling U.S.treasury securities
• C)The Federal Reserve buying U.S.treasury securities
• D)Temporary tax increases

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Definitions:

State

A politically organized body of people usually occupying a definite territory; especially one that is sovereign.

Local Government Employees

Workers employed by municipal, county, or district authorities to provide services at the local level, including education, public safety, and infrastructure maintenance.

Civil Service Act

Legislation intended to secure a competent, honest, and impartial government workforce, often by means of a merit system.

Spoils System

A practice where a political party, after winning an election, gives government jobs to its supporters, friends, and relatives as a reward for working toward victory, and as an incentive to keep working for the party.