When taxes are cut, aggregate demand ________ and aggregate supply ________. A. decreases; decreases B. increases;...
When taxes are cut, aggregate demand ________ and aggregate supply ________.
A.
decreases; decreases
B.
increases; does not change
C.
decreases; increases
D.
increases; increases
E.
increases; decreases
e
Homework Answers
Option D
Tax cuts are the tools of expansionary fiscal policy which a government uses to increase the economic activity. The tax cuts increases job opportunities which increases aggregate demand for good as the disposable income increases. So in order to meet the increased demand the supply too incresaes which increases the aggregate supply.
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When taxes are cut, aggregate demand ________ and
aggregate supply ________.
A.
decreases; decreases
B.
increases;...
Equilibrium price must decrease when demand a. increases and supply does not change, when demand does...
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If aggregate demand decreases and aggregate supply increases, the price level ________.
If aggregate demand decreases and aggregate supply increases, the price level ________.
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A supply shock causes a shift in: a. long-run aggregate supply. b. aggregate demand. c. short-run and long-run aggregat...
A supply shock causes a shift in:
a. long-run aggregate supply.
b. aggregate demand.
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d. short-run aggregate supply.
e. aggregate demand and short-run aggregate supply.
Consider the exhibit below for the following questions.
Figure 20-1
Refer to Figure 20-1. The economy would be moving to long-run
equilibrium if it started at
a. A and moved to B.
b. C and moved to B.
c. D and moved to C.
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1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate supply shifts right 2. Suppose that the output was two hundred million in 2017 and two hundred and ten million in 2018. Then, then the growth rate in GDP between 2017 and 2018 would be? a. 10% b. 5% c. 15% d. 20% 3. Suppose that the unemployment rate exceeds the natural rate, then a. the...
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21. When demand increases and supply decreases in a market at the same time, you can accurately predict their effec...
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When the price level increases, aggregate planned expenditure decreases, which leads to A. a rightward shift...
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QUESTION 8 In Productovia, aggregate demand increases and aggregate supply decreases. Based on the shifts in these two curves, what is a likely outcome? deflation higher taxes lower imports inflation QUESTIONS As GDP decreases, tax revenues Causing to aggregate demand deeline testraint decline stimulus increase restraint increase stimulus
A supply shock causes a shift in:
a. long-run aggregate supply.
b. aggregate demand.
c. short-run and long-run aggregate supply.
d. short-run aggregate supply.
e. aggregate demand and short-run aggregate supply.
Consider the exhibit below for the following questions.
Figure 20-1
Refer to Figure 20-1. The economy would be moving to long-run
equilibrium if it started at
a. A and moved to B.
b. C and moved to B.
c. D and moved to C.
d. None of the above...
1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate supply shifts right 2. Suppose that the output was two hundred million in 2017 and two hundred and ten million in 2018. Then, then the growth rate in GDP between 2017 and 2018 would be? a. 10% b. 5% c. 15% d. 20% 3. Suppose that the unemployment rate exceeds the natural rate, then a. the...
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