The aggregate supply curve shifts rightward when O potential GDP decreases. income taxes increase. the money wage rate rises. O the money wage rate falls. O government purchases increase.
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- Which of the following shifts aggregate demand to the left? Select one: a. an increase in imports Ob. a decrease in taxes c. None of the other choices are correct O d. a decrease in interest rates O e. an increase in exportsIf the price level rises and the money wage rate remains constant, what happens to the quantity of real GDP supplied? How does the economy move? If the price level rises and the money wage rate remains constant, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. increases; aggregate supply curve B. increases; potential GDP line C. does not change; aggregate supply curve D. does not change; potential GDP line Thanks!!An increase in taxes when the economy is above full employment OA. increases; falls B. increases; rises O C. does not change; does not change O D. decreases; falls aggregate demand and real GDP, and the price level
- . Everything else the same, if taxes riseaggregate demand shifts out to the right.aggregate demand shifts out to the right.aggregate supply shifts in to the left.aggregate demand shifts in to the left.Which fiscal policy will increase aggregate supply? increasing tax rates on businesses O increasing tax rates on consumers instituting more regulations on businesses allocating more money for federal student loansWhat are the components of the aggregate demand (AD) curve?
- Recall the Aggregate Demand and Aggregate Supply model, in the short-run, a reduction in businesses' costs of production make output rise and prices fall. O output fall and prices rise. O output and prices fall. output and prices rise.The long-run aggregate supply curve shifts right if O the capital stock decreases. the government increases some environmental regulations that limit production methods. O there is good weather for growing crops. O None of the answers is correct. The long-run aggregate supply curve would shift right if the government were to O raise taxes on investment spending. O reduce the minimum-wage. make unemployment benefits more generous. O All of the answers are correct.If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? How does the economy move? If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. does not change; potential GDP line B. increases; aggregate supply curve C. decreases; potential GDP line D. does not change; aggregate supply curve
- If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? How does the economy move? If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. does not change; potential GDP line B. increases; aggregate supply curve C. decreases; potential GDP line D. does not change; aggregate supply curve Thanks!01 10 CO xp 381 In the figure, the economy is at an equilibrium with real GDP of $20 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the curve shifts, because 0 0 0 0 0 A. aggregate demand; leftward; the money wage rate rises B. aggregate supply: rightward; the money wage rate falls OC. potential GDP; leftward; the money wage rate falls D. aggregate demand; rightward; the money wage rate falls OE. aggregate supply; leftward; the money wage rate rises 130- 120- 110- 100- Price level (GDP price Index, 2012 = 100) Potential GDP 90- AS AD 19.0 19.5 20.0 20.5 21.0 21.5 22.0 Real GDP (trillions of 2012 dollars) ✓ ✓ 5During recessions, taxes tend to a. rise and thereby increase aggregate demand. b. fall and thereby decrease aggregate demand. c. fall and thereby increase aggregate demand. d. rise and thereby decrease aggregate demand.