Suppose individuals now believe that there will be a future tax cut. This reduction in expected future taxes will cause which of the following to occur in the current period?
A) the LM curve to shift down
B) the LM curve to shift up
C) the IS curve to shift rightward
D) the IS curve to shift leftward
E) none of the above
C
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Even when allowed to collude, firms in an oligopoly may choose to cheat on their agreements with the rest of the cartel. Why?
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
In the United States, the wage floor legislated by government below which it is generally illegal to pay workers is known as
A) the minimum wage. B) the wage ceiling. C) the employment gap. D) the going wage.
A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this
A. will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall. B. will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease. C. will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall. D. will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase.