Figure 9.1 shows three aggregate demand curves. A movement from curve AD1 to curve AD0 could be caused by a(n)
A) increase in government spending. B) decrease in taxes.
C) increase in the price level. D) decrease in the money supply.
D
You might also like to view...
Producing goods can add to net wealth, but rendering services cannot. Explain.
What will be an ideal response?
Which of the following would be included in a person's life-cycle wealth?
a. savings account b. refrigerator c. stock in a corporation d. government savings bonds e. income
Horizontal equity means that equally situated individuals should be taxed equally
a. True b. False Indicate whether the statement is true or false
The real interest rate is 4 percent and the nominal interest rate is 6 percent. Is there inflation or deflation? What is the inflation or deflation rate?
a. deflation; 2 percent b. deflation; 10 percent c. inflation; 2 percent d. inflation; 10 percent