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If the government wants to expand aggregate demand, it can _________ government purchases or _________ taxes. a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease

Chapter 34, Problem 4

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QUESTION:

If the government wants to expand aggregate demand, it can _________ government purchases or _________ taxes.

a. increase; increase

b. increase; decrease

c. decrease; increase

d. decrease; decrease

Questions & Answers

QUESTION:

If the government wants to expand aggregate demand, it can _________ government purchases or _________ taxes.

a. increase; increase

b. increase; decrease

c. decrease; increase

d. decrease; decrease

ANSWER:

Step 1 of 2

Aggregate demand: Aggregate demand refers to the total amount of goods and services that are produced and are ready for purchase at the possible price.

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