Question

Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would most likely cause a shift from ADI to AD2? A) A decrease in taxes and an increase in government purchases B) An increase in taxes and an increase in government purchases 14) Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n): A) upward movement along the demand curve for orange juice. B) leftward shift in the demand curve for orange juice. C) downward movement along the demand curve for orange juice. D) rightward shift in the demand curve for orange juice. 15) An increase in the minimum wage is likely to: A) cause unemployment among high-skill workers, C) increase the income of labor. B) cause unemployment among low-skill workers. D) increase on-the-job training opportunities. dion frontier exnands. Price Level

Answer 1

a) "A"

A decrease in the government taxes and an increase in the government will shift the AD curve to the right.

b) "A"

an increase in the price of orange juice will only cause a movement along the demand curve.

c) "B"

it will increase the unemployment among the less skilled worker.