Part of the spending on the Doyle Drive project in northern ...

[folubunmi]

Part of the spending on the Doyle Drive project in northern California came from the American Reinvestment and Recovery Act, which is an example of discretionary fiscal policy aimed at increasing
 
  A) tax revenues and the federal budget surplus. B) the money supply and money demand.
  C) disposable income and interest rates. D) real GDP and employment.

Question 2

Refer to Figure 24-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be?
 
  A) A B) B C) C D) D

[parshano]

Answer to Question 1

D

Answer to Question 2

A