Question

A government might enact expansionary spending when it is trying to increase aggregate demand for goods. decrease aggregate demand for goods. slow an economic expansion. lower a budget deficit.

Answer 1

Answer:

Explanation:

Since government spending is one of the components of aggregate demand, an increase in government spending will shift the demand curve to the right. A reduction in taxes will leave more disposable income and cause consumption and savings to increase, also shifting the aggregate demand curve to the right.