Author Question: In which of the following ways does government affect the consumption component of planned aggregate ... (Read 41 times)

mckennatimberlake · **on:** Jun 30, 2018

In which of the following ways does government affect the consumption component of planned aggregate expenditures?
a. Through net taxes, which change disposable income
b. By purchasing goods and services, which increase consumption
c. By using subsidies to encourage firms to invest
d. By reducing the interest rate to encourage firms to invest
e. By producing public goods

Question 2

All of a firm's inputs are considered to be variable in the long run.
a. True
b. False
Indicate whether the statement is true or false