1.To decrease aggregate demand, a government can either decrease spending or _________ taxes. 2. Fiscal policy refers to the _________ and _________ policies used by the government to influence the...

1.To decrease aggregate demand, a government can either decrease spending or _________ taxes.

2. Fiscal policy refers to the _________ and _________ policies used by the government to influence the economy.

3. If the multiplier for taxation is –1.50, then a $150 billion increase in taxes will ultimately shift the demand curve by _________.

4. _________ lags refer to the time it takes for policy actions to have their effect on the economy.