Question

factors that shift the AD Curve include A) government purchases B) autonomous investment C) taxes D) all of the above E) none of the above 33. If government cuts taxes A) after tax income should increase shifting AD to the left to a lower cu B) after tax income should increase shifting AD to the right to a higher eq output C) after tax income and the equilibrium level of output remain unchanged D) after tax income remains unchanged but the equ ains unchanged but the equilibrium level of output would increase E) none of the above o the left to a lower equilibrium level of output the right to a higher equilibrium level of 34 Which of the following would shift the FE line to the right? A) An adverse supply shock B) A decrease in labor supply C) An increase in the capital stock D) An increase in the future marginal productivity of capital 35. An increase in the money supply would cause the IS curve to A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.

Answer 1

Ans32) the correct option is d) all of the above

Ans33) the correct option is b) after tax income should increase shifting AD to the right.........

Ans34) the correct option is c) an increase in the capital stock

Ans35) the correct option is c) remain unchanged