A policy of a tax cut combined with increases in government purchases would shift the aggregate demand curve to the left
a. True
b. False
Indicate whether the statement is true or false
False
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A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show
A) an inverse relationship. B) a negative relationship. C) a direct relationship. D) Both answers A and B are correct.
What happens as the result of a shortage?
A) There is downward pressure on prices. B) There is upward pressure on prices. C) Consumers begin to view the good as an inferior good because they have a hard time finding it. D) Supply of the good decreases.
Jim has estimated elasticity of demand for gasoline to be -0.7 in the short-run and -1.8 in the long run. A decrease in taxes on gasoline would: a. lower tax revenue in both the short and long run. b. raise tax revenue in both the short and long run
c. raise tax revenue in the short run but lower tax revenue in the long run. d. lower tax revenue in the short run but raise tax revenue in the long run.
The chair of the Board of Governors of the Federal Reserve is
a. appointed by the U.S. president. b. elected by the twelve Federal Reserve Banks. c. elected by member banks. d. appointed by Congress.