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I know the answer is c. Could you please explain why a, b, and d are incorrect answers in detail?   Q2. QQ) If the government wants to contract aggregate demand, it can _____ government purchases or _____ taxes. a.increase, increase b.increase, decrease c.decrease, increase d.decrease, decrease

I know the answer is c. Could you please explain why a, b, and d are incorrect answers in detail?   Q2. QQ) If the government wants to contract aggregate demand, it can _____ government purchases or _____ taxes. a.increase, increase b.increase, decrease c.decrease, increase d.decrease, decrease

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 8CQ
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I know the answer is c. Could you please explain why a, b, and d are incorrect answers in detail?

 

Q2. QQ) If the government wants to contract aggregate demand, it can _____ government purchases or _____ taxes.

a.increase, increase

b.increase, decrease

c.decrease, increase

d.decrease, decrease

 

 

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