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White raven [17]
4 years ago
7

what happens to consumption, aggregate demand and GDP when the federal government enacts fiscal policy

Social Studies
1 answer:
Pachacha [2.7K]4 years ago
6 0

Fiscal policy directly affects the aggregate demand of an economy. Recall that aggregate demand is the total number of final goods and services in an economy, which include consumption, investment, government spending, and net exports. Fiscal policy has an effect on each of these categories.

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However, this cannot always be achieved so <u>when our self detects an inconsistency between our attitudes and and our beliefs</u> (we experience something new that opposes our belief about the world or contradicts it in some way or we need to act in one of these ways), this creates mental stress or discomfort and our mind works to reduce it.  

Therefore, we could say that dissonance theory argues that people experience a kind of mental discomfort when confronted with new information, and as a result, they consciously and subconsciously work to limit or reduce that discomfort.

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