Business, 18.03.2021 01:20 puchie1225

1. Suppose the federal government observes a decrease in net exports. Examine this event in terms of the aggregate demand and aggregate supply model. A. The increase in gross investment will cause.
B. This will lead toin the price level andin real GDP.
C. fiscal policy will be used to.
D. The fiscal policy actions may includein taxes and/orin government purchases.
E. The goal of fiscal policy is to.
2. Suppose the federal government observes an increase in gross investment. Examine this event in terms of the aggregate demand and aggregate supply model.
A. The decrease in net exports will cause.
B. This will lead toin the price level andin real GDP.
C. fiscal policy will be used to.
D. The fiscal policy actions may includein taxes and/orin government purchases.
3. In which instance would "crowding out" likely become a concern?
A. A balanced budget law prevents the government from taking fiscal action during a recession.
B. Prior-year budget surpluses allow the government to use saved funds to reduce taxes.
C. In order to increase spending on infrastructure, the federal government decides to borrow funds.
4. What becomes more difficult if "crowding out" occurs due to fiscal action?
A. Purchasing stocks and other financial investments.
B. Making economic investments.
C. Saving income for future purchases.

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