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If household becomes more future oriented and decides to save more at each income level, consumer spending falls. As a result aggregate demand falls at each income level. Thus, aggregate demand curve shifts to the left. Here, only option D is correct. Option A is incorrect because AD curve does not shifts to the right. Options B and C are incorrect because there will be no change in supply curves.
Republican politician is elected next president and as a first act, cuts household income tax rates by 5%....
Question 1: According to Milton Friedman, the reason there are two Phillips curves is because a. prices are inflexible. b. the expected inflation rate does not instantaneously adjust to changes in the actual inflation rate. c. the expected inflation rate is equal to 1 minus the actual inflation rate. d. the expected inflation rate adjusts to changes in the actual inflation rate. Question 2: Milton Friedman argued that there a, are two Phillips curves, a short-run one and a long-run...
only 14, 16 and 18 is needed The Aggri that is the aggr by is the short ly is the long WHAT IS THE The aggregate su zinionship betwe de relationship Section 8.4 14. Describe what the effect on aggregate demand would be, other things being equal, i a. exports increase b. both imports and exports decrease. C. consumption decreases. d. investment increases. e investment decreases and government purchases increase. f. the price level increases. g the price level decreases....
Grading Obamacare: Successes, Failures and ‘Incompletes’ We’ve updated this article with the news that Republicans abandoned a vote to repeal the Affordable Care Act. As House Speaker Paul Ryan acknowledged, Obamacare is still “the law of the land.” Did Obamacare work? It’s worth reflecting upon after President Trump and House Republicans failed on Friday to repeal and replace the “disaster” of Obamacare. Ever since the Affordable Care Act was passed in 2010, it has been so contentious that it can...