Needs-tested spendingO increases as real GDP increases.O makes recessions more severe.O decreases as unemployment increases.O decreases in recession.O increases as unemployment increases.

All government, investment, consumption, and transfer payments are added up in government…

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Needs-tested spending O increases as real GDP increases. O makes recessions more severe.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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Needs-tested spending
O increases as real GDP increases.
O makes recessions more severe.
O decreases as unemployment increases.
O decreases in recession.
O increases as unemployment increases.

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