One technique in answering behavior interview questions is STAR where S makes for specific situation, T for task, A for action and R for result. SImple but efficient procedure
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Answer: B - False
Explanation:
In a command economy the government only makes economic decisions- what is produced, price, income etc . The government owns all means of production.
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Answer:
C. to increase aggregate demand.
Explanation:
Aggregate demand describes the total amount of all finished goods and services demanded in a country in a period. Aggregate is a reflection on the purchasing power of consumers in an economy. A decrease in aggregate demand implies the economic power of consumers has decreased. A high inflation rate, low income, or high rate of unemployment can cause the aggregated demand to declines.
Expansionary fiscal policies are government actions of reducing taxes or increasing expenditure on stimulus programs. Reducing taxes increases the disposable income of consumers. It encourages firms to expand their businesses. An increase in disposable means consumers will have more money to spend, which boosts aggregate demand. If the government spends money on stimulus programs such as the construction of roads and public buildings, it creates employment and income for more people.
Answer:
increase by $800
Explanation:
if taxes decrease by 200 then
GPD x tax multipler = net impact on GDP
the tax multiplier is calculated as follows:
multiplier = 4
tax variation x multiplier
200 x 4 = 800
As the taxes decreases the effect on the GDP is positive.
