The economy slips into a recession and the government is thi

The economy slips into a recession and the government is thinking of providing a stimulus package to boost the aggregate demand. Which of the following is most likely to increase the aggregate demand, all else the same? Increase taxes Reduce transfer payments Reduce government purchases Increase transfer payments None of the above.

Solution

Ans:

Increase transfer payments

The economy slips into a recession and the government is thinking of providing a stimulus package to boost the aggregate demand. Which of the following is most

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