Aggregate demand shifts right when the government
a. decreases taxes.
b. cuts military expenditures.
c. repeals an investment tax credit.
d. None of the above is correct.
a
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Suppose that in Canada the government places a $1,500 tax on the buyers of new snowmobiles. After the purchase of a new snowmobile, a buyer must pay the government $1,500. How would the imposition of the tax on buyers be illustrated in a graph?
A) The tax will shift both the demand and supply curves to the right by $1,500. B) The tax will shift the demand curve to the left by $1,500. C) The tax will shift the supply curve to the left by $1,500. D) The tax will shift the demand curve to the right by $1,500.
When speed boat sales rise, the city of Las Vegas takes in more revenue. The omitted common variable between these outcomes is likely to be:
A. childhood obesity. B. prices of Las Vegas flights. C. increased disposable income. D. life jacket sales.
In principle, taxes and cap-and-trade plans will have exactly the same effects
Indicate whether the statement is true or false
When a firm minimizes its losses in the short run,
A. It continues to produce only if price exceeds average variable cost. B. The firm enters or exits from the market. C. It continues to produce only if price exceeds marginal revenue. D. The firm makes an investment decision.