If society wants aggregate demand to increase without changes in the price level, then there must be
A) an increase in autonomous spending combined with an increase in the marginal propensity to save.
B) a gap between full employment and the current level of real GDP and an increase in autonomous spending.
C) an increase in autonomous saving so that autonomous investment spending can increase.
D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.
D
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The term tax incidence refers to
A) the amount of revenue government collects from a tax imposed on a good or service. B) whether the burden of a tax rests more heavily on those with higher incomes or those with lower incomes. C) the degree of progression of a tax. D) the actual division of the burden of a tax between buyers and sellers in a market.
Other things equal, the higher the interest rate paid on term deposits, the ________ funds that are available in banks' reserve accounts and the ________ the potential for expanding the money supply
A) more; greater B) more; lower C) fewer; greater D) fewer; lower
What is/are the central argument(s) against tariffs?
(a) They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and are operating inefficiently. (b) A laissez-faire economy is the American way. (c) They protect the wealthy. (d) They benefit only fast-growing industries.
During periods of inflation, all prices increase
a. True b. False Indicate whether the statement is true or false