If tax rates increased, giving people a decreased incentive to work and businesses a decreased incentive to invest
A. both aggregate supply and demand will decrease, aggregate output will decrease, and the price level will decrease.
B. aggregate supply will decrease, aggregate demand will increase, aggregate output will decrease, and the price level will increase.
C. aggregate supply will decrease, aggregate output will decrease, and the price level will decrease.
D. aggregate supply will decrease, aggregate output will decrease, and the price level will increase.
Answer: D
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Within the balance of payments, a current account deficit is offset by a:
A) financial account deficit. B) financial account surplus. C) budget deficit. D) budget surplus.
If the government does not react to a recession:
A. the economy will remain out of its long-run equilibrium indefinitely. B. the economy will recover, but much more slowly. C. voters and consumers are likely to be happy with less government interference. D. the government generally doesn’t engage in any policy during a recession.
Average total cost reveals how much total cost will change as the firm alters its level of production
a. True b. False Indicate whether the statement is true or false
Under oligopoly:
A. there are many sellers in the industry. B. the demand for each firm's output is perfectly elastic. C. there are only a few sellers in the industry. D. there are no barriers to entry.