3
answers
0
watching
537
views
rosecrow410Lv1
28 Sep 2019
A.
In response to a negative supply shock, the government decreases taxes. The most likely result of the government's tax decrease is: a decrease in unemployment and a decrease in the aggregate price level. a decrease in unemployment and an increase in the aggregate price level. an increase in unemployment and an increase in the aggregate price level. an increase in unemployment and a decrease in the aggregate price level.
B.
If the aggregate price level rises, holding everything constant, consumers will: demand less aggregate output at all price levels resulting in a shift right of the AD curve. find their purchasing power has increased and will purchase more goods and services leading to an increase in the aggregate output demanded. need more money to purchase the same basket of goods which will lead to an increase in the demand for money leading to interest rate increases, and a reduction in the quantity of aggregate output demanded via a drop in investment demand. need less money to purchase the same basket of goods which will lead to a decrease in the demand for money leading to interest rate decreases, and an increase in the quantity of aggregate output demanded via an increase in investment demand.
A.
In response to a negative supply shock, the government decreases taxes. The most likely result of the government's tax decrease is: | |||||||||
|
B.
If the aggregate price level rises, holding everything constant, consumers will: | |||||||||
|
Raushan RajLv8
28 Sep 2019
Already have an account? Log in