The aggregate demand curve would shift to the right if
A. the money supply were decreased.
B. net taxes were decreased.
C. the cost of energy were to increase.
D. government spending were decreased.
Answer: B
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Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the long run
A) an increase; no change B) a decrease; no change C) an increase; an increase D) no change; a decrease
In the calculation of the CPI, tea is given greater weight than beer if
a. the price of tea is higher than the price of beer. b. it costs more to produce tea than it costs to produce beer. c. tea is more readily available than beer to the typical consumer. d. consumers buy more tea than beer.
Which of the following will definitely cause the value of the misery index to increase?
A. Greater stagflation. B. A rightward shift of the aggregate supply curve. C. A leftward shift of the Phillips curve. D. A rightward shift of the aggregate demand curve.
The impact of economic growth on a country's willingness to trade is determined solely by the extent of the shift of its production-possibility curve.
Answer the following statement true (T) or false (F)