Refer to Figure 4.3. All else equal, a decrease in the desire of households to consume today accompanied by an increase in corporate taxes would cause which of the following shifts?
A) S1 to S2 and D1 to D2
B) S2 to S1 and D1 to D2
C) S1 to S2 and D2 to D1
D) S2 to S1 and D2 to D1
C
You might also like to view...
Refer to Figure 9.2. A movement from point d to point c could be caused by a(n)
A) increase in government spending. B) increase in the price of oil. C) increase in taxes. D) increase in short-run aggregate supply.
If a firm wants to finance a new project, it can obtain financing by
A) using its retained earnings. B) issuing and selling new shares of stock. C) selling corporate bonds to the public. D) all of the above.
Fiscal policy can:
A. have real effects on the economy in the short run. B. bring the economy to its long run equilibrium faster than it can correct itself. C. cause inflation. D. All of these are true.
German luxury car exports were hurt in 2009 as a result of the recession. How did this decrease in exports affect Germany's aggregate demand curve?
A) The aggregate demand curve shifted to the right. B) The aggregate demand curve did not shift, but there was a movement up the aggregate demand curve. C) The aggregate demand curve did not shift, but there was a movement down the aggregate demand curve. D) The aggregate demand shifted to the left.