President Obama has discussed raising income taxes for individuals earning over $250,000 in income. Explain how these higher income taxes will affect the aggregate demand curve
What will be an ideal response?
Raising the income tax decreases the amount of disposable income available to those households. Lower disposable income decreases consumption at every price level. The result is a shift in the aggregate demand curve to the left.
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Refer to the figure above. If the monopolist faces a constant marginal cost of $10, what is the optimal quantity that it should produce?
A) 20 units B) 30 units C) 40 units D) 80 units
Japan experienced periods of deflation—a declining price level—during the 1990s. During a deflationary period, which would be higher: nominal GDP or real GDP? Why? Assume that the base year of choice is prior to the deflationary period
What will be an ideal response?
Roughly what percentage of Americans were officially considered poor in 2012?
a. 2 percent b. 9 percent c. 15 percent d. 22 percent
The largest component of GDP is:
A. personal consumption expenditures. B. government spending. C. durable goods. D. net exports.