When taxes increase, consumption
a. decreases as shown by a movement to the left along a given aggregate-demand curve.
b. decreases as shown by a shift of the aggregate demand curve to the left.
c. increases as shown by a movement to the right along a given aggregate-demand curve.
d. increases as shown by a shift of the aggregate demand curve to the right.
b
You might also like to view...
A decrease in the real exchange rate will tend to ________ exports and to ________ imports.
A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase
If the currency drain ratio is zero, which of the following situations leads to the greatest total increase in the quantity of money?
A) an increase in the monetary base of $250,000 when the desired reserve ratio is 15 percent B) an increase in the monetary base of $100,000 when the desired reserve ratio is 5 percent C) an increase in the monetary base of $120,000 when the desired reserve ratio is 10 percent D) an increase in the monetary base of $100,000 when the desired reserve ratio is 50 percent E) an increase in the monetary base of $200,000 when the desired reserve ratio is 20 percent
When economies of scale exist, an increase in the level of output will lead to: a. a decrease in cost per unit. b. an increase in cost per unit. c. a decrease in total cost
d. both a. and c. above
In general, the duration of job search will be shorter if
A. less job-market information is available. B. it is more costly to obtain job-search information. C. there are fewer employment agencies. D. unemployment compensation benefits decrease.