Exhibit 15-6 Aggregate demand and supply model
?
In Exhibit 15-6, if the aggregate demand curve is at AD2, the government should:
A. raise taxes to move to AD1.
B. not change its policy.
C. cut taxes to move to AD3.
D. cut spending to move to AD3.
Answer: B
You might also like to view...
How have depository institutions made innovations that have influenced the composition of money?
What will be an ideal response?
When discussing pass through effects, it is fair to say
A) that the degree of pass through varies across nations, time and industries. B) that the degree of pass through varies across nations. C) that the degree of pass through varies across time and industries. D) that the degree of pass through varies across industries.
It is often impossible for a business firm to determine its private costs of production
a. True b. False Indicate whether the statement is true or false
Which of the following best describes the traditional political use of tariffs?
a. protection of borders b. protection of military secrets c. protection of exchange rates d. protection of vested economic interests