The following list contains items that are related to aggregate demand and/or aggregate supply. Government Spending...
The following list contains items that are related to aggregate demand and/or aggregate supply.
- Government Spending
- Consumer Expectations
- Degree of Excess capacity
- Personal Income Tax Rates
- Productivity
- National Income Abroad
- Business Taxes
- Domestic Resource Availability
- Price of Imported Products
- Profit Expectations on Investments
Refer to the above list. Changes in which of the above two factors would most likely cause a change in aggregate supply?
Multiple Choice
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8 and 9
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3 and 10
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5 and 7
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1 and 5
Homework Answers
Answer : The answer is "5 and 7".
When productivity increase then aggregate supply imcrease and when productivity decrease then aggregate supply decrease. Therefore, option 5 is correct.
When business tax increase then production decrease which decrease the aggregate supply. Again when business tax decrease then production increase which increase aggregate supply. Therefore, option 7 is correct.
Hence the answer is "5 and 7".
Add Answer to:
The following list contains items that are related to aggregate
demand and/or aggregate supply.
Government Spending...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
Aggregate Demand (AD) & Aggregate Supply Start each # scenario at equilibrium and full employment (Q),...
Aggregate Demand (AD) & Aggregate Supply Start each # scenario at equilibrium and full employment (Q), determine what curve shifts and the impact.T Economic ChangeH WhichDoes the curve shifts?Increase or unemployment, inflation, Does this shift cause a problem of curve AD or AS Decrease? neither or both? 14 Real Interest Rates Decrease 2 Substantial immigration occurs 3A Citizens Pay off Debt*i 4 Better Trained workforce increases ncreasing labor supply productivityH 5Excess Capacity increasest 64Increase by the government in Business 7H...
Question 37 Supply-side economics emphasizes: long-run effects on aggregate supply rather than short-run effects on aggregate...
Question 37 Supply-side economics emphasizes: long-run effects on aggregate supply rather than short-run effects on aggregate demand. all of the above. low marginal tax rates. increasing incentives to work, save, and invest. ---------------------- A progressive tax system is one for which: each tax payer pays an equal dollar amount in taxes. taxes as a percentage of income decreases as income increases. taxes as a percentage of income are the same for all income levels. taxes as a percentage of income...
Which of the following help to explain why the aggregate demand curve slopes downward?
Which of the following help to explain why the aggregate demand curve slopes downward? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. When the domestic price level rises, our goods and services become more expensive to foreigners When government spending rises, the price level falls There is an inverse relationship between consumer expectations and personal taxes When the price level rises, the real value of...
Which would most likely shift the aggregate supply curve? A change in the prices of _____....
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
es amounting to 00,000 on Super 168 Part 2 The Macroeconomy: Aggregate omy: Aggregate Supply and...
es amounting to 00,000 on Super 168 Part 2 The Macroeconomy: Aggregate omy: Aggregate Supply and Demand the go wx on all was aplicate Trivialand in the fol- the same questions. Also calcu- The government levied sales taxes $500,000 on Specific Motors and $200 m per (but none on farmers). In addition ernment levied a 10 percent income tax interest, and rental income. d. In addition to the food and cars men Test Yourself Question 2, consumers in imported 500...
13. The aggregate demand curve would shift to the left if 13. A. government spending were...
13. The aggregate demand curve would shift to the left if 13. A. government spending were increased. B. the money supply were increased. C. the cost of energy were to decrease. D. net taxes were increased. All Numbers are in S Billiion Consmption Planned Investment Government Output Net Spending Income) Taxes (C 100+0.9-Y) Savings Purchases Spending 2,400 100 2,800 100 3,000 100 3,200 100 3,400 100 3,600 100 3,800 100 2,170 2,530 2,710 2,890 3,070 3,250 3,300 150 170 190...
31. Which one of the following would not shift the aggregate demand curve? a. a change...
31. Which one of the following would not shift the aggregate demand curve? a. a change in the price level. b. Depreciation of the international value of the dollar c. A decline in the interest rate at each possible price level. d. An increase in personal income tax rates. 32. The short-run aggregate supply curve (SRAS) shows the relationship between The general level of prices and the quantity of goods and services purchased by all consumer sin the economy. b....
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a chan...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
Which of the following will most likely cause a decrease in short-run aggregate supply (leftward shift) in the goods and services market?
35. Which of the following will most likely cause a decrease in short-run aggregate supply (leftward shift) in the goods and services market? a. An increase in the productivity of labor b. A reduction in the price of crude oil, a major imported commodity c. An increase in resource prices d. Favorable weather conditions in agricultural areas. 36. The vertical long-run aggregate supply curve reflects the fact that in the long run, an increase in the price level. a. Will not alter the economy's maximum...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
Aggregate Demand (AD) & Aggregate Supply Start each # scenario at equilibrium and full employment (Q), determine what curve shifts and the impact.T Economic ChangeH WhichDoes the curve shifts?Increase or unemployment, inflation, Does this shift cause a problem of curve AD or AS Decrease? neither or both? 14 Real Interest Rates Decrease 2 Substantial immigration occurs 3A Citizens Pay off Debt*i 4 Better Trained workforce increases ncreasing labor supply productivityH 5Excess Capacity increasest 64Increase by the government in Business 7H...
es amounting to 00,000 on Super 168 Part 2 The Macroeconomy: Aggregate omy: Aggregate Supply and Demand the go wx on all was aplicate Trivialand in the fol- the same questions. Also calcu- The government levied sales taxes $500,000 on Specific Motors and $200 m per (but none on farmers). In addition ernment levied a 10 percent income tax interest, and rental income. d. In addition to the food and cars men Test Yourself Question 2, consumers in imported 500...
13. The aggregate demand curve would shift to the left if 13. A. government spending were increased. B. the money supply were increased. C. the cost of energy were to decrease. D. net taxes were increased. All Numbers are in S Billiion Consmption Planned Investment Government Output Net Spending Income) Taxes (C 100+0.9-Y) Savings Purchases Spending 2,400 100 2,800 100 3,000 100 3,200 100 3,400 100 3,600 100 3,800 100 2,170 2,530 2,710 2,890 3,070 3,250 3,300 150 170 190...
31. Which one of the following would not shift the aggregate demand curve? a. a change in the price level. b. Depreciation of the international value of the dollar c. A decline in the interest rate at each possible price level. d. An increase in personal income tax rates. 32. The short-run aggregate supply curve (SRAS) shows the relationship between The general level of prices and the quantity of goods and services purchased by all consumer sin the economy. b....
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
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