When Congress Reduces Spending in Order to Balance the Government's

question 15

Multiple Choice

When Congress reduces spending in order to balance the government's budget, it needs to consider

• A) both the short-run effects on aggregate demand and aggregate supply, and the long-run effects on saving and growth.
• B) only the short-run effects on aggregate demand and aggregate supply.
• C) only the long-run effects on saving and growth.
• D) only the long-run effects on aggregate demand and aggregate supply.

---

Definitions:

Voting Shares

Stocks that provide the owner with the ability to influence corporate decisions and elect the board of directors through voting.

Patent

A legal right granted by the government to an inventor, giving the inventor exclusive rights to use, sell, or manufacture the invention for a certain period of time.

Trademark

A recognizable sign, design, or expression which identifies products or services of a particular source from those of others.

Goodwill

An intangible asset that represents the excess value paid for a company over its net assets at the time of acquisition, reflecting attributes like brand reputation, customer relations, and intellectual property.