Which of the Following Pairs of Policies Shift Aggregate Demand

question 27

Multiple Choice

Which of the following pairs of policies shift aggregate demand in the same direction?

• A)​A tax increase and an increase in the money supply.
• B)​A transfer payment decrease and an increase in the money supply.
• C)​A reduction in government purchases and decline in the money supply.
• D)​An increase in government purchases and a decline in the money supply.

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Definitions:

Carpet Bombing

A method of aerial bombing where large areas are systematically bombed to destroy targets and demoralize the enemy.

Napalm

A highly flammable sticky jelly used in incendiary bombs and flamethrowers, developed during World War II.

Crop Defoliants

Crop defoliants are chemicals used to cause the leaves of plants to fall off prematurely, often used to facilitate the harvesting of certain crops.

Black Muslims

Members of the Nation of Islam, an African American political and religious movement founded in the United States in 1930, which aims to improve the spiritual, mental, social, and economic condition of African Americans.