If taxes rise, then aggregate demand shifts
a. right, making unemployment higher than otherwise.
b. right, making unemployment lower than otherwise.
c. left, making unemployment higher than otherwise.
d. left, making unemployment lower than otherwise.
c
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When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price ________ and the equilibrium quantity ________
A) rises; decreases B) falls; increases C) rises; probably changes but the direction of the change cannot be determined D) probably changes but the direction of the change cannot be determined; increases
A wholesale flower market is an example of ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
The supply-side economists expect that a cut in the marginal income tax rate, with lost revenues made up by a cut in government spending, would
a. increase output. b. decrease output. c. leave output unchanged. d. affect output but the direction of the effect is uncertain.
As other firms enter a monopoly's market, the monopoly's market power
A) is unaffected. B) declines. C) increases. D) increases according to the Lerner Index but decreases according to the price/marginal cost ratio.