Decreases in government spending
a. shift the aggregate supply to the right.
b. have no effect on aggregate demand.
c. shift the aggregate demand curve to the right.
d. shift the aggregate demand curve to the left.
d. shift the aggregate demand curve to the left.
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Which of the following is not true concerning consumer surplus?
a. It is qraphically the area under the demand curve and above the market price. b. It does not exist in equilibrium. c. A leftward shift of the supply curve will decrease consumer surplus. d. A rightward shift of the supply curve will increase consumer surplus.
Individuals economize and respond predictably to Select one:
a. positive incentives but not negative incentives b. negative incentives but not positive incentives c. both positive and negative incentives d. neither positive or negative incentives
Investment is important to the short run health of the economy because it
a) is the largest component of GDP b) is countercyclical, and thus stabilizing c) is highly volatile, and thus contributes largely to business cycles d) can be easily controlled by government e) is highly predictable, and thus useful for forecasting
A useful economic model
A) utilizes only the two most important factors to analyze the problem under consideration. B) generates statements that are incapable of refutation. C) represents every detail of the real world. D) yields usable predictions and implications for the real world.