A new tax introduced by the government will:
a. decrease disposable income
b. increase disposable income.
c. lead to a reduction in government spending.
d. lead to an increase in government spending.
e. have no effect on disposable income.
a
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Suppose the Federal Reserve desires to raise the level of planned investment in the economy
It either has to hope that an improvement in business confidence shifts the rate-of-return line to the ________ , or it has to take direct action by ________ the interest rate. A) right, raising B) right, lowering C) left, raising D) left, lowering
If the cost of labor decreases the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate outward around the point where only capital is employed in production. D) shift inward in parallel fashion.
If the fringe supply curve shifts leftward in the dominant firm model, then the resulting market equilibrium price is ________ and the dominant firm's quantity ________
A) lower, decreases B) lower, increases C) higher, decreases D) higher, increases
The four components of planned aggregate expenditure are:
A. consumption, planned investment, government transfers, and net interest. B. consumption, planned investment, government purchases, and net exports. C. spending on durable goods, inventory investment, government debt, and net exports. D. spending on domestic goods, domestic services, foreign goods, and foreign services.