When the economy overheats, the government sometimes cools it down with higher taxes, spending reductions, and less money. Which of the following indicates the appropriate change in the U.S. economy after government intervention?
A. Aggregate demand shifts to the left
B. Aggregate demand shifts to the right
C. The economy moves up along the aggregate demand curve
D. The economy moves down along the aggregate demand curve
A. Aggregate demand shifts to the left
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Assume a small nation has the following statistics: its consumption expenditure is $15 million, investment is $2 million, government purchases of goods and services is $1 million, exports of goods and services to foreigners is $1 million, and imports
of goods and services from foreigners is $1.5 million. Calculate this nation's GDP.
A normal good is defined as one
a. having a downward-sloping demand curve b. that is neither a luxury nor a basic good c. that is bought by consumers with normal tastes d. whose demand increases when incomes increase e. whose demand decreases when incomes increase
Competitive labor markets see firms acting as though the marginal labor cost is constant
Indicate whether the statement is true or false
Use the following table to answer the next question. The following national income data for an economy is in billions of dollars.Consumption$5,100Investment1,100Transfer payments1,050Government purchases1,400Exports850Imports950Net foreign factor income20GDP for this economy is ________.
A. $7,500 billion B. $6,400 billion C. $9,400 billion D. $10,470 billion