• Tax reduction. Reduction of taxes can shift the aggregate demand curve to the right. A tax must be larger than the proposed government spending to achieve the same amount of an increase I the aggregate demand.
• Increased government spending. An increase in government spending will shift an economy aggregate demand curve to the right hence an increase I output and increase levels of economic activities in the country.
• Combined increase in government spending and tax reductions. The government can combine spending increases and tax reductions to produce the desired initial increase in spending and eventually increase in aggregate demand and real gross domestic product.
skilled writter answered the question on May 3, 2018 at 17:26
- State objectives of budgetary policies.(Solved)
State objectives of budgetary policies.
Date posted: May 3, 2018. Answers (1)
- Outline the three types of budgets(Solved)
Outline the three types of budgets
Date posted: May 3, 2018. Answers (1)
- Describe six principles of taxation(Solved)
Describe six principles of taxation
Date posted: May 3, 2018. Answers (1)
- Describe the various types of cost in manufacturing accounts.(Solved)
Describe the various types of cost in manufacturing accounts.
Date posted: May 3, 2018. Answers (1)
- State five limitations of using ratios.(Solved)
State five limitations of using ratios.
Date posted: May 3, 2018. Answers (1)
- Explain factors that makes it difficult for Kenyans to purchase houses through building societies(Solved)
Explain factors that makes it difficult for Kenyans to purchase houses through building societies.
Date posted: May 2, 2018. Answers (1)
- QUESTION: Describe the theories that have embraced entrepreneurship culture. (10 Marks)
(Solved)
COURSE CODE: BBM 208
COURSE TITLE: ENTREPRENEURSHIP THEORY AND CONCEPTS.
Second year second semester.
Date posted: May 1, 2018. Answers (1)
- Give four advantages of buying goods on hire purchase(Solved)
Give four advantages of buying goods on hire purchase.
Date posted: May 1, 2018. Answers (1)
- Differentiate giving examples between human wants and needs(Solved)
Differentiate giving examples between human wants and needs.
Date posted: May 1, 2018. Answers (1)
- Explain four methods for exchange control applied by the government.(Solved)
Explain four methods for exchange control applied by the government.
Date posted: May 1, 2018. Answers (1)
- Outline the objectives of exchange control(Solved)
Outline the objectives of exchange control
Date posted: May 1, 2018. Answers (1)
- Explain five factors leading to fluctuations of foreign exchange.(Solved)
Explain five factors leading to fluctuations of foreign exchange.
Date posted: May 1, 2018. Answers (1)
- Distinguish between nominal interest rate and real interest rate.(Solved)
Distinguish between nominal interest rate and real interest rate.
Date posted: May 1, 2018. Answers (1)
- Explain the various measures to control inflation.(Solved)
Explain the various measures to control inflation.
Date posted: May 1, 2018. Answers (1)
- Explain 7 effects of inflation.(Solved)
Explain 7 effects of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the various causes of inflation.(Solved)
Describe the various causes of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the classifications of inflation(Solved)
Describe the classifications of inflation
Date posted: May 1, 2018. Answers (1)
- State six feature of inflation(Solved)
State six feature of inflation
Date posted: May 1, 2018. Answers (1)
- Distinguish between risk control and risk financing(Solved)
Distinguish between risk control and risk financing
Date posted: May 1, 2018. Answers (1)
- Discuss four methods of handling risks(Solved)
Discuss four methods of handling risks
Date posted: May 1, 2018. Answers (1)