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.

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Definitions:

Corporate Property

Assets owned by a corporation, which can include real estate, machinery, intellectual property, and other tangible and intangible assets.

Durable Power of Attorney

A legal document that grants a designated person the authority to make financial and/or health care decisions on behalf of someone else, even if the grantor becomes incapacitated.

Incapacity

The lack of legal ability to perform an act, such as entering into a contract due to mental disability or minority.

Sound Mind and Memory

A legal term indicating that a person is mentally competent to make decisions and understand their consequences.