Some economists argue that the federal government should normally ...

[olgavictoria]

Some economists argue that the federal government should normally run a deficit at potential GDP, with the borrowed funds applied to
 
  A) health care costs. B) social security benefits.
  C) investment goods. D) consumption goods.

Question 2

The nation of Hyperbole is in a recession, and the government decides to increase taxes and reduce government spending to reduce the growing deficit. This will ________ aggregate demand and will likely ________ real GDP and employment.
 
  A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase

[mistyjohnson]

Answer to Question 1

C

Answer to Question 2

A

[olgavictoria]

TYSM

[adammoses97]

Excellent