9:53 PM ccsu.blackboard.com .ill AT&T; QUESTION 4 2 points Save Answer The gover

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9:53 PM ccsu.blackboard.com .ill AT&T; QUESTION 4 2 points Save Answer The government can use form of level of aggregate demand in the economy. in the to increase the Aa contractionary fiscal policy; an increase in taxes B. an expansionary fiscal policy; an increase in government spending an expansionary fiscal policy; an increase in corporate taxes D, a contractionary fiscal policy, a reduction in taxes QUESTION 5 1 points Save Answer A typical policy allows government to decrease the level of aggregate demand, through increases in taxes or a decrease in government spending fiscal A. standardized OB. discretionary expansionary Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers

Explanation / Answer

4. b) an expansionary fiscal policy; an increase in governmen spending.

Increase in government spending increases the G component of AD and shifts AD curve rightwards.

5. C) contractionary

Contractionary fiscal policy includes increase in taxes and decrease in government spending which decreases AD in the economy.

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