Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to Keynes, an increase in government spending or an increase in money supply will
A. shift AD1 to the right.
B. shift LRAS to the right.
C. shift AD1 to the left.
D. shift AS1 to the right.
Answer: A
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A flat tax which does allow deductions for investment spending is a type of
A) investment tax. B) excise tax. C) luxury tax. D) consumption tax.
If the dollar depreciates, it can be said that
a. foreign countries no longer respect the United States. b. it falls in value within the United States. c. it takes fewer dollars to buy foreign currencies. d. other currencies appreciate.
Taxes constant
What will be an ideal response?
There are 20 residents in the village of Towneburg. The size of the village's annual fireworks display depends upon the number of shells that are fired off. Each resident's demand for fireworks is shown below. The total cost of the fireworks display is $1,000 plus $10 per shell.
Collectively, the residents of Towneburg would be willing to pay ________ for the 10th shell, and the marginal cost of the 10th shell is ________.
A. $30; $10 B. $30; $100 C. $600; $1,100 D. $600; $10