Psu Econ 104 Exam 3 || A+ Graded Already.

In the basic AD-AS model, a decrease in government expenditures will shift ________ to the _________. {Ans: aggregate demand; left}Holding all else constant, which of the following will shift the aggregate demand curve to the left? a decrease in the real interest rate a decrease in real GDP an increase in business taxes a decrease in future profit expectations of firms {Ans: a decrease in future profit expectations of firms}Currently, out of the listed options, the largest category of revenues for the U.S. is: Discretionary Spending Individual Income Taxes Mandatory Spending Corporate Income Taxes Net Interest Payments {Ans: Individual Income Taxes}A decrease in aggregate demand results in a(n) ________ in the ________. {Ans: recession; short run}Which of the following is an example of discretionary fiscal policy? a decrease in food stamps issued during an expansion or boom an increase in income tax receipts with rising income during an expansion the stimulus payments passed by Congress in 2020 to combat the COVID-19 recession an increase in unemployment insurance payments during a recession {Ans: the stimulus payments passed by Congress in 2020 to combat the COVID-19 recession}Poorly timed discretionary policy can do more harm than good. Getting