In the aggregate expenditures model, a tax increase causes a(n):
a. upward shift in the aggregate expenditures curve.
b. downward shift in the aggregate expenditures curve.
c. shift in the 45-degree line.
d. rightward movement along the aggregate expenditures curve.
e. leftward movement along the aggregate expenditures curve.
b
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An optimal decision is one that is selected based on an analysis of
A. explicit costs but not implicit costs. B. implicit costs but not explicit costs. C. both explicit costs and implicit costs. D. neither explicit costs nor implicit costs.
Which of the following does a social planner necessarily need to know to restore efficiency in a monopoly market?
A) The monopolist's marginal costs only B) The buyers' demand for a close substitute of the product sold in the market C) The monopolist's marginal revenue and the tax levied on the sale of the good D) The monopolist's marginal costs and the buyers' willingness to pay for the good
The quantitative importance of U.S. protection of the domestic clothing industry is best explained by the fact that
A) this industry is an important employer of highly skilled labor. B) this industry is an important employer of low skilled labor. C) most of the exporters of clothing into the U.S. are poor countries. D) this industry is a politically well organized sector in the U.S. E) the technology involved is very advanced.
Because two percent of the largest farms grow half of all of the grain in the United States, the grain industry is technically classified as an oligopoly
Indicate whether the statement is true or false