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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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
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.
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).