• 2022-06-09
    When
    taxes increase, consumption ()
    A: decreases
    as shown by a movement to the left along a given aggregate demand
    curve.
    B: decreases
    as shown by shifting aggregate demand to the left.
    C: increases
    as shown by shifting aggregate supply the left.
    D: None
    of the above is correct.
  • B

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    • 0

      A large decrease in the income tax rate will most likely cause A: a fairly large increase in aggregate demand B: a fairly small increase in aggregate supply C: an increase in the price level D: all of the above E: none of the above

    • 1

      Assume there are only two airlines, Air China and Hainan Airlines, which fly directly from Beijing to Hainan. What would happen in the market demand for Air China if Hainan Airlines went out of business? A: The market demand curve would shift to the right. B: The market demand curve would shift to the left. C: There would be a movement to the right along the initial market demand curve. D: There would be a movement to the left along the initial market demand curve.

    • 2

      To increase the money supply, the Fed could() A: sell<br/>government bonds. B: decrease<br/>the discount rate. C: increase<br/>the reserve requirement. D: None<br/>of the above is correct.

    • 3

      Assume that there is a single firm producing toilet paper and the firm specific demand curve is the same as the market demand curve. If a second firm that also produces toilet paper enters the market what will happen to the firm-specific demand curve of the original firm? A: There is a movement up along the demand curve. B: There is a movement down along the demand curve. C: shifts to the right D: shifts to the left

    • 4

      When aggregate demand increases faster than aggregate supply, prices go up. What is this an example of? A: Demand-pull inflation B: Cost-push inflation C: Per-worker productivity D: Deflation