The corporate tax applies to firms’ total revenues.
Answer the following statement true (T) or false (F)
False
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As the money supply increases, interest rates _______ and aggregate demand shifts to the _______.
A. Increase; left B. Increase; right C. Decrease; left D. Decrease; right
How do U.S. exports of agricultural products affect the demand for agricultural products?
What will be an ideal response?
Refer to the graphs above. Suppose a firm is currently producing 500 computers per week and charging a price of $1000. How will the firm respond to a negative demand shock if prices are flexible?
A.
The firm will continue to produce 500 computers per week and charge a price of $600
B.
The firm will continue to produce 500 computers per week and charge a price of $1200
C.
The firm will cut production to 300 computers per week and charge a price of $1000
D.
The firm will cut production to 300 computers per week and charge a price of $600
Suppose there is a reduction in expected future taxes. This will cause which of the following to occur?
A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period