In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?
A) P1 B) E2 C) E3 D) E1
B
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Which of the following will cause a movement along the aggregate demand curve?
a. A decrease in the price level b. An increase in government purchases c. A decrease in taxes d. An increase in investment spending e. An increase in the interest rate
Which of the following would cause an increase in demand for Toyota automobiles?
a. an increase in the price of Toyota automobiles b. a decrease in the price of Toyota automobiles c. a decrease in the price of Honda automobiles d. an increase in the price of Honda automobiles
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off
a. True b. False Indicate whether the statement is true or false
Sonja paid $15,000 in taxes after having earned $100,000 . Amanda paid $22,000 in taxes after having earned an income of $146,667.This is an example of a proportional tax
a. True b. False Indicate whether the statement is true or false