BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cutting taxes.
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cutting government spending.
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cutting production of consumer goods.
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cutting prices of consumer goods.
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Detailed explanation-1: -The two significant examples include increased government spending as well as tax cuts. These policies seek to raise aggregate demand while leading to deficits or drawing the decline of budget surpluses.
Detailed explanation-2: -The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies are intended to increase aggregate demand while contributing to deficits or drawing down budget surpluses.
Detailed explanation-3: -Answer and Explanation: The correct answer is C) A decrease in taxes. This option is correct because a tax decrease is an example of an expansionary fiscal policy. As taxes decrease, the IS curve shifts rightward, which increases the aggregate demand curve.