Which One of the Following Is True About the Effects

question 188

Multiple Choice

Which one of the following is true about the effects of fiscal policy?

• A) A decrease government spending will increase aggregate supply.
• B) A tax change does not have any direct or indirect effects on aggregate demand.
• C) A decrease in government spending will decrease aggregate demand.
• D) An increase in government spending will reduce aggregate demand.

---

Definitions:

Restructuring

The process of changing the organizational structure, strategies, or operations of a company to improve efficiency or adapt to new conditions.

Strategic Change

Change of a larger scale, such as organizational restructuring.

Operational Change

Adjustments made to the day-to-day operations of an organization, aiming to improve efficiency or effectiveness.

Transformational Change

Change in which the organization moves to a radically different, and sometimes unknown, future state.