Question

In: Economics

If a country is trying to recover from a recent recession, it is unlikely their government...

If a country is trying to recover from a recent recession, it is unlikely their government officials will decide to ________ because it would ________.

lower interest rates; decrease aggregate demand

raise tax; decrease aggregate demand

raise money supply; increase aggregate demand

increase taxes; increase aggregate demand

Solutions

Expert Solution

"B"

They will be reluctant to increase the taxes in the market because it would decrease aggregate demand in the market.

'the answer is "B".

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

What was the effect of the government policies implemented to recover from the recession?
What was the effect of the government policies implemented to recover from the recession?
The country of Cashewopia is in a recession, and the government is having a debate over...
The country of Cashewopia is in a recession, and the government is having a debate over whether to use typical fiscal policy, which focuses on stimulating the consumption side of the economy, or to use supply-side fiscal policy, which focuses on stimulating the production side of the economy. As the economic advisor to the president, you are asked to outline the pros and cons of each type of fiscal policy. Briefly outline these pros and cons.
The country of Cashewopia is in a recession, and the government is having a debate over...
The country of Cashewopia is in a recession, and the government is having a debate over whether to use typical fiscal policy, which focuses on stimulating the consumption side of the economy, or supply-side fiscal policy, which focuses on stimulating the production side of the economy. As the economic advisor to the president, you are asked to outline the pros and cons of each type of fiscal policy. Briefly outline these pros and cons.
In the long-run, the aim of the Australian government is not just to recover from the...
In the long-run, the aim of the Australian government is not just to recover from the current recession and reduce the output gap to zero but also to increase the potential output of the economy. What economic policies do you advise to the Australian government to increase the potential output of the Australian economy in the long run.
In the long-run, the aim of the Australian government is not just to recover from the...
In the long-run, the aim of the Australian government is not just to recover from the current recession and reduce the output gap to zero but also to increase the potential output of the economy. What economic policies do you advise to the Australian government to increase the potential output of the Australian economy in the long run. (250 words)
What is a balance sheet recession? What factors make these recessions more difficult to recover from...
What is a balance sheet recession? What factors make these recessions more difficult to recover from than normal recessions? Illustrate a balance sheet recession in the 3-equation model. (10 points)
Suppose the country is currently experiencing a recession. What type of fiscal policy can the government...
Suppose the country is currently experiencing a recession. What type of fiscal policy can the government use to fight off recession?
The economy of a country  is suffering from recession, use the suitable economic policy to correct this...
The economy of a country  is suffering from recession, use the suitable economic policy to correct this situation. Explain briefly & Graph your answer using Ad & AS model.
On August 30th 2016 the business headlines reported that the country of Ireland plans to recover...
On August 30th 2016 the business headlines reported that the country of Ireland plans to recover up to 13 billion euros ($14.6 billion) in unpaid taxes from Apple Inc. What do believe are the merits of this case for Apple and is there a lesson for corporations who might consider setting up their headquarters overseas for the purpose of tax avoidance? And what should be expected of these corporate giants now that President Trump has implemented a new tax code?
Which of the government policies below is most unlikely toencourage per capita economic growth?the...
Which of the government policies below is most unlikely to encourage per capita economic growth?the use of tax revenues for infrastructure investment and capital formationpromotion of education and training programs for workersspecial subsidies for capital-intensive forms of productionhigh taxes and new regulations on companies that spend a lot on new investment projects
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT