Which one of the following would shift the aggregate demand curve to the left?
A. an increase in the money supply
B. an increase in government spending
C. an increase in exports
D. an increase in taxes
Answer: D
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What does the Law of Diminishing Marginal Product state?
What will be an ideal response?
The difference between the marginal expenditure and the wage is greater when the supply curve of labor is
A) less elastic at the monopsony optimum. B) more elastic at the monopsony optimum. C) more elastic than the demand curve. D) The difference does not depend on any elasticity.
Which of these faulty economic policies was adopted by President Hoover during the Great Depression?
a. An increase in tax rate b. An increase in trade barriers c. A decrease in tax rate d. A decrease in government spending e. An increase in government spending
Refer to the table. If the equilibrium level of real GDP is $43 billion, its level of consumption will be:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. $20 billion.
B. $22 billion.
C. $24 billion.
D. $26 billion.