If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises, but aggregate supply does not change.
b. Aggregate demand falls and aggregate supply rises.
c. Aggregate demand rises and aggregate supply rises.
d. Aggregate demand falls and aggregate supply falls.
e. Neither the aggregate demand nor the aggregate supply change.
.D
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How do governments in the United States redistribute income?
What will be an ideal response?
Characteristics of a perfectly competitive market include:
A. the presence of transaction costs. B. differentiated products. C. many sellers, each with a small market share. D. All of these are characteristics of a perfectly competitive market.
John Maynard Keynes
A. agreed with classical writers that strong automatic pressures drive market economies to full employment. B. focused on attaining the long-run macroeconomic goal of high, but stable economic growth. C. argued that a market economy might become stuck in a short-run equilibrium in which substantial capital and labor lay idle. D. argued that short-run equilibrium occurs only at full employment.
In the short run, a perfectly competitive firm calculates the profit-maximizing (or loss-minimizing) production output by equating:
A) price and average variable cost. B) price and average total cost. C) price and marginal revenue. D) marginal revenue and marginal cost.