President Barrack Obama and Congress Cut Taxes and Raised Government

question 21

Multiple Choice

President Barrack Obama and Congress cut taxes and raised government expenditures during the 2008 financial crisis.According to the aggregate supply and aggregate demand,model which of these policies would tend to reduce unemployment?

• A)both the tax cut and the increase in government expenditures
• B)the tax cut but not the increase in government expenditures
• C)the increase in government expenditures but not the tax cut
• D)neither the increase in government expenditures nor the tax cut