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# super artem2505
VIII. Insert the appropriate words or word-combinations from the box in the following text.
reduction, employment, government, income, expenditures, receipts,
macroeconomic, monetary, payments, inflation
When the government increases spending on goods and services or on transfer ... but does not increase tax ... correspondingly and if no other significant changes occur — total aggregate demand will rise and the economy will experience more of its resources or more ... or both. Conversely, when government reduces ...without reducing tax receipts, aggregate demand will decline and the economy will experience less employment of its resources or less inflation or both. Similar effects can he obtained by reducing or increasing tax receipts while holding expenditures constant. A ... in tax receipts will raise people’s disposable ... and thus increase aggregate demand in the economy. An increase in tax receipts will reduce people’s disposable income and thus lower aggregate demand. Thus, as with ... policy, we still have much to learn about fiscal policy and how it can be best used to achieve ... objectives.