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
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
举一反三
- Cutting income tax rates will most likely cause A: a large shift in the AD-curve but a small shift in the AS-curve B: a small shift in the AD-curve but a large shift in the AS-curve C: a large increase in output resulting in a large increase in tax revenues D: a budget deficit so large that income growth is no longer possible E: both B) and C)
- An increase in market supply and an increase in market demand will result in A: A decrease in equilibrium price and an increase in equilibrium quantity B: A decrease in equilibrium price - the change in equilibrium quantity is indeterminate C: An increase in equilibrium quantity and the change in price is unclear D: all of above
- Which of the following always raises the equilibrium price? A: an increase in both demand and supply B: a decrease in both demand and supply C: an increase in demand combined with a decrease in supply D: a decrease in demand combined with an increase in supply
- Which of the following would lead to a DECREASE in the demand for tennis balls? A: A decrease in the price of tennis rackets B: An increase in the cost of producing tennis balls C: A decrease in average household income when tennis balls are a normal good D: An increase in the price of tennis balls E: None of the above
- When<br/>taxes increase, consumption () A: decreases<br/>as shown by a movement to the left along a given aggregate demand<br/>curve. B: decreases<br/>as shown by shifting aggregate demand to the left. C: increases<br/>as shown by shifting aggregate supply the left. D: None<br/>of the above is correct.