An income tax cut ________ aggregate demand and ________ aggregate supply
A) increases; decreases
B) increases; increases
C) decreases; decreases
D) decreases; increases
E) does not change; increases
B
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Aggregate expenditure is total:
A. spending on final goods and services. B. value added in the economy. C. revenue from the sale of goods and services. D. income of households, businesses, governments, and foreigners.
If a bond was to pay off one year from now for $321 and the interest rate is 7 percent, what is the price of the bond?
A) $147 B) $279 C) $300 D) $342
Within the AD/AS model, an increase in capital formation that permits the economy to achieve a larger output will
a. increase long-run aggregate supply. b. increase short-run aggregate supply, but long-run aggregate supply will be unaffected. c. increase aggregate demand. d. decrease aggregate demand.
The _____ curve shows how production in the economy is related to the price level.
Fill in the blank(s) with the appropriate word(s).