Asked by
Marreo Parks
on Nov 11, 2024
Verified
Figure 11.1 shows the relationship between the price level and the real GDP.Which of the following sets of policies would unambiguously move the economy to full employment?
A) Increase in government purchases,increase in taxes,and decrease in transfer payments
B) Decrease in government purchases,increase in taxes,and decrease in transfer payments
C) Increase in government purchases,decrease in taxes,and increase in transfer payments
D) Increase in government purchases,increase in taxes,and increase in transfer payments
E) Decrease in government purchases,decrease in taxes,and decrease in transfer payments
Full Employment
An economic condition where every available workforce is employed in the most effective way achievable.
Government Purchases
Expenditures made by the government sector on final goods and services in a given time period, influencing the overall economy.
Transfer Payments
Payments made by the government to individuals without any expectation of a good or service in return, such as welfare or social security.
- Apprehend the workings and outcomes of fiscal policies on total demand and Gross Domestic Product.
- Assess the impact of fiscal policy on equilibrium output, employment levels, and price levels.
Verified Answer
MW
Learning Objectives
- Apprehend the workings and outcomes of fiscal policies on total demand and Gross Domestic Product.
- Assess the impact of fiscal policy on equilibrium output, employment levels, and price levels.