TRUE OR FALSE 8. Fiscal policy is the use of taxes and spending by the governmen
ID: 1218419 • Letter: T
Question
TRUE OR FALSE
8. Fiscal policy is the use of taxes and spending by the government to affect aggregate demand.
____ 9. Government purchases and income taxes have the same effect on the multiplier
11. Productivity increases, brought about by increased education and training, may shift the aggregate supply curve outward.
.
____ 10. An increase in income taxes was part of President George W. Bush's plan in 2001 and 2008 to increase aggregate demand.
1. If the Bush tax cuts were allowed to expire in 2010, the maximum personal income tax rate in the United States would have moved above 50 percent. TRUE OR FALSE
Explanation / Answer
Answer 8:
True . Fiscal policy relies on the use of taxes and spending by the government to influence aggregate demand in the economy.
Answer 9:
False. Government spending multiplier is higher as it directly impacts aggregate demand while income taxes have smaller impact on aggregate demand as compared to government spending as it impacts disposable income and then impacts aggregate demand of the economy.
Answer 11:
True. This will help in increasing efficiency and shift the AS curve rightwards.
Answer 10:
False. There were decrease in taxes between 2001 and 2008.
Answer 1:
True.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.