Tax increases on business income decrease aggregate demand by decreasing
A) business investment spending. B) government spending.
C) consumption spending. D) wage rates.
A
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When we choose a particular option, we must give up alternative options. The highest-valued alternative forgone is the ________ of the option chosen
A) opportunity cost B) comparative advantage C) nonmonetary cost D) absolute advantage
If the international value of the dollar rises, the
a. aggregate demand curve will shift inward. b. aggregate supply curve will shift outward. c. U.S. price level will fall. d. All of the above are correct.
If tax rates are raised to avoid a deficit during a recession, then
a. real GDP and deadweight loss from taxes will rise. b. real GDP will rise and deadweight loss from taxes will fall. c. real GDP will fall and deadweight loss from taxes will rise. d. real GDP and deadweight loss from taxes will fall.
An In The News article in the text is titled "The Misery Index." If an increase in government regulations causes the AS curve to shift to the left, the misery index will
A. Decrease. B. Remain unchanged. C. Increase, decrease, or remain unchanged, depending on circumstances. D. Increase.