Which of the following statements is correct?
A) The higher the price level, the larger is the quantity of real GDP demanded.
B) An increase in exports shifts the aggregate demand curve leftward.
C) A tax increase shifts the aggregate demand curve leftward.
D) An increase in people's expected future income shifts the aggregate demand curve leftward.
E) An increase in potential GDP shifts the aggregate demand curve rightward.
C
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The short run Phillips Curve shows there is ________ relationship between the unemployment rate and the rate of inflation.
A. a positive B. a constant C. a negative D. no
A permanent increase in autonomous investment causes
A) a less than proportional increase in real Gross Domestic Product (GDP). B) a more than proportional increase in real Gross Domestic Product (GDP). C) an offsetting change in saving that leaves real Gross Domestic Product (GDP) at the same level. D) a proportional increase in real Gross Domestic Product (GDP).
When price is greater than both marginal cost and average variable cost, the perfectly competitive firm
A) is maximizing economic profit. B) should increase its level of output. C) should reduce its level of output. D) should stop production.
If a firm increases output when MR < MC, then:
a. profit will equal zero. b. profit will increase. c. profit will decrease. d. profit will remain the same. e. the firm is minimizing losses.