Which of the following events would most likely reduce aggregate demand?
A. An increase in real interest rates.
B. An increase in expected returns on investment.
C. A reduction in business and personal tax rates.
D. A reduction in the amount of existing capital stock.
Answer: A
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To find an economy's long-run equilibrium price level, locate the point where ________ and ________ cross and look to the left
A) long-run aggregate supply; aggregate demand B) aggregate demand; short-run aggregate supply C) aggregate demand; price level D) demand; supply
Which of the following is true about government activity in the United States?
a. Macroeconomic policy is handled mainly at the state level. b. Higher education is handled mainly at the national level. c. Primary and secondary education is handled mainly at the local level. d. Primary and secondary education is handled mainly at the national level. e. Police and fire protection are handled mainly at the state level.
Which of the following is most likely to result in a decline in the economic growth of a nation?
a. The installation of a network of irrigation ditches and pumping stations to grow fruits and vegetables in parts of southern California b. The invention of a threshing machine for harvesting grains c. Increased government funding for higher-secondary education d. Emigration by the citizens of Nomanzia, an island country, when a politically repressive regime took office
The opportunity cost of more consumption of goods today is
A) lower consumption of goods in the future. B) fewer capital goods in the future. C) more capital goods today. D) more unemployment both today and in the future.