ECONOMICS
AGGREGATE DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
____ taxes
|
|
|
____ public goods
|
|
|
____ spending on subsidies
|
|
|
____ merit goods
|
Detailed explanation-1: -A change in fiscal policy has a multiplier effect on economic growth or contraction because an increase or decrease in government spending or a change in tax policy ripples through every major segment of the economy, affecting levels of spending, production, and business investment.
Detailed explanation-2: -The tax increase lowers demand by lowering disposable income. As long as that reduction in consumer demand is not offset by an increase in government demand, total demand decreases.
Detailed explanation-3: -The proceeds of the central excise duty is not shared between the Central and State Governments.
Detailed explanation-4: -Reduce Tax Liability.-The main purpose of tax planning is to reduce tax liability imposed on a person. Minimization of litigation.-Taxpayers want to minimize his legal litigations. Economic stability. Productivity. Financial Growth. 27-Jun-2019