Which of the following will occur in an IS-LM model, if the government decides to raise the income tax rate?
A: the IS-curve will become flatter and shift to the right
B: the IS-curve will become steeper and shift to the left
C: the IS-curve will shift parallel to the left
D: the LM-curve will become steeper and shift to the right
E: the LM-curve will shift parallel to the right
A: the IS-curve will become flatter and shift to the right
B: the IS-curve will become steeper and shift to the left
C: the IS-curve will shift parallel to the left
D: the LM-curve will become steeper and shift to the right
E: the LM-curve will shift parallel to the right
举一反三
- In an IS-LM model, an increase in autonomous spending A: is caused by a fall in the interest rate B: will cause a fall in the interest rate C: will lead to an increase in income and the interest rate D: will shift the LM-curve to the right E: is caused by a movement along the IS-curve from left to right
- Rising oil prices in the U.S. during the 1970s caused the economy’s ( ) A: aggregate supply curve to shift to the right. B: aggregate supply curve to shift to the left. C: aggregate demand curve to become vertical. D: aggregate demand curve to become horizontal.
- Higher<br/>government deficits ________ the supply of bonds and shift the supply<br/>curve to the <br/>________,<br/>everything else held constant. A: increase; left B: increase; right C: decrease; left D: decrease; right
- Factors that can cause the supply curve for bonds to shift to the left include ________
- If the market price of a good is above the equilibrium price ______ A: a surplus will exist, which will put downward pressure on the prices. B: the supply curve will shift to the right as firms rush to take advantage of the high price. C: the demand curve will shift to the left as consumers decrease the quantity they buy. D: the government will intervene to force the price downward. E: a shortage will exist, which will force the price even higher.