If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises, but aggregate supply does not change.
b. Aggregate demand falls, and aggregate supply rises.
c. Aggregate demand and aggregate supply rise.
d. Aggregate demand and aggregate supply fall.
e. Neither aggregate demand nor aggregate supply change.
.D
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"Learning by doing" allows an incumbent firm to deter entry because
A) it raises the incumbent's marginal cost B) it lowers the incumbent's marginal cost C) it shifts the demand for the good rightward D) it is only available to incumbents and not future entrants
People tend to track consumption by the bundles in which a product is delivered rather than the actual consumption of the product.
Answer the following statement true (T) or false (F)
Suppose the demand for milk is relatively inelastic. What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?
A) Sales revenue falls. B) Sales revenue rises. C) Sales revenue remains unchanged. D) It cannot be determined without information on prices.
The major difference between a closed economy and an open economy is that a(n)
a. closed economy balances budget, while an open economy does not. b. open economy is a market economy, while a closed economy relies on planning. c. open economy interacts with the rest of the world, while a closed economy does not. d. closed economy keeps political affairs secret, while an open economy does not.