If the government were to increase income taxes, we would predict:
A. a downward movement along the aggregate demand curve.
B. a shift in aggregate demand to the right.
C. a shift in aggregate demand to the left.
D. an upward movement along the aggregate demand.
C. a shift in aggregate demand to the left.
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An increase in the supply of money will:
a. reduce the rate of interest and, thereby, trigger an increase in current spending by households and businesses. b. reduce aggregate demand and real output. c. increase only the general level of prices. d. lead to a higher rate of unemployment.
If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:
a. do nothing to stimulate the economy. b. undertake fiscal policy to stimulate aggregate demand. c. undertake fiscal policy to stimulate aggregate supply. d. balance the budget to stimulate aggregate demand.
If the United States imposes a tariff on the import of Japanese cars instead of a quota, the price
A. increase in Japanese cars goes into the revenue of U.S. automakers. B. increase in Japanese cars goes into the revenue of Japanese automakers. C. increase in Japanese cars goes into the revenue of the U.S. government. D. decrease in Japanese cars comes out of the revenue of U.S. automakers. E. decrease in Japanese cars comes out of the revenue of the U.S. government.
When total utility is at a maximum
A) marginal utility is at a minimum. B) marginal utility is negative. C) marginal utility is zero. D) marginal utility is equal to total utility.