Other things being equal, an increase in taxes will
A. lead to a corresponding reduction in interest rates increasing the crowding out effect.
B. cause a decrease in aggregate demand due to decreases in consumption, investment, or net exports.
C. influence the short run aggregate supply curve but not the aggregate demand curve.
D. lead to a reduction in the long run aggregate supply curve as businesses enjoy greater profits.
Answer: B
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The term strategy in terms of game theory refers to
a. the relationship between price and marginal cost b. the relationship between individual firm demand curves and the market demand curve c. each firm's game plan in making decisions d. the interrelationship between price and marginal revenue e. the tendency for collusive firms to generate normal profits
The system we use to measure the value of an economy is called:
A. national income accounting. B. national economic valuation. C. macroeconomic summation. D. national expenditure accounting.
How does an increase in near term spending needs affect the supply and demand curve for money?
Economic forces:
A. give rise to scarcity. B. are not related to scarcity. C. are a reaction to scarcity. D. are not related to rationing.