A country decides to reduce its government spending. The resulting economic change will be represented by a(n):

a. upward movement along the aggregate demand curve.
b. downward movement along the aggregate demand curve.
c. leftward shift of the aggregate demand curve
d. rightward shift of the aggregate demand curve.


c

Economics

You might also like to view...

To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.

Economics

MSB equals

A) MC + the marginal external cost. B) MC + the marginal external benefit. C) MB + the marginal external cost. D) MB + the marginal external benefit. E) MB + MC.

Economics

The marginal revenue product of labor is

A) the marginal physical product multiplied by marginal revenue. B) the marginal revenue of output multiplied by the price of the input. C) total sales divided by total labor employed. D) total labor employed divided by total sales.

Economics

An import quota on a product protects domestic industries by:

a. reducing the foreign supply to the domestic market and, thereby, raising the domestic price. b. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price. c. increasing the domestic demand for the product and, thereby, increasing its price. d. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.

Economics