How do lower taxes affect aggregate demand?
A) They increase disposable income, consumption, and aggregate demand.
B) They increase aggregate supply and thus increase aggregate demand as well.
C) they increase corporate investment and aggregate demand.
D) They reduce disposable income, consumption, and aggregate demand.
A
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Using the figure above, if Jack and Jill specialize and gain from trade, then
A) Jack specializes on the production of soda and water. B) Jack specializes in the production of soda. C) Jack produces equal amounts of gallons of water and bottled water. D) Jack specializes in the production of bottled water. E) Jack and Jill produce beyond their PPF.
Why does GDP equal aggregate income and also equal aggregate expenditure?
What will be an ideal response?
Which of the following will cause a decrease in the supply of jeans?
A. A decrease in the demand for jeans. B. A decrease in the price of jeans. C. An increase in the wages paid to workers who make jeans. D. A decrease in the expected future price of jeans.
The three motives that John Maynard Keynes identified for why people hold money are the _______, ________ and _______ motives.
Fill in the blank(s) with the appropriate word(s).