If the government decreases the income tax rate, then:
A. GDP will decrease.
B. aggregate demand will shift left.
C. aggregate demand will shift right.
D. aggregate supply curve with shift to the right.
C. aggregate demand will shift right.
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Trade results from
A) comparative advantage. B) diminishing returns. C) self-sufficiency. D) absolute advantage.
What replaced the Bretton Woods system?
a. the gold standard b. a pooled currency system c. a free float system d. a managed float system e. fixed exchange rates
When firms exit a monopolistically competitive market: a. product variety diminishes
b. prices fall. c. profits decrease (losses increase). d. the demand curves of established firms shift to the right.
The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. rejecting a job candidate that fails to show up at the allotted interview time
c. GPS tracking devices in repair trucks
d. listening in on call center conversations