In the short run increase in personal income taxes will likely cause aggregate demand/supply to

Aggregate Demand: decrease Aggregate Supply: not change

Which will most likely occur as a result of an increase in labor productivity in an economy?

An increase in output and increase in inflation

An advance in technology will cause the

long-run aggregate supply curve to shift to the right

Based on the picture, what is true about the long-run equilibrium (LR Eq) of this economy?

Wages increase, SRAS shifts to the left to restore LR Eq

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Aggregate Demand and Supply and Fiscal Policy

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An economics Quiz quiz for college students

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Questions 8

Answers

1
An AS increase will likely cause income & employment to change in which of the following ways?
Decrease and Increase
No change and Increase
Increase and Increase
Decrease and decrease
2
An increase in which of the following is most likely to promote economic growth?
the trade deficit
consumption spending
the natural rate of unemployment
investment tax credits
3
In the short run increase in personal income taxes will likely cause aggregate demand/supply to
Aggregate Demand: decrease Aggregate Supply: not change
Aggregate Demand: not change Aggregate Supply: increase
Aggregate Demand: not change Aggregate Supply: decrease
Aggregate Demand: decrease Aggregate Supply: increase
4
Which will most likely occur as a result of an increase in labor productivity in an economy?
A decrease in exports and an increase in unemployment
An increase in output and increase in inflation
An increase in interest rates and decrease in investments
A decrease in both money demand and money supply
5
Stagflation is most likely to be caused by
a decrease in aggregate supply
a decrease in aggregate demand
An increase in aggregate demand
An increase in aggregate supply
6
A simultaneous increase in inflation and unemployment could be explained by an increase of
labor productivity
consumer spending
the money supply
inflationary expectations
7
An advance in technology will cause the
long-run aggregate supply curve to shift to the left
long-run aggregate supply curve to shift to the right
short-run aggregate supply curve to shift to the left
aggregate demand curve to shift to the right
8
Based on the picture, what is true about the long-run equilibrium (LR Eq) of this economy?
Wages increase, SRAS shifts to the left to restore LR Eq
The long-run AS will shift to the right to restore LR Eq
The economy is in long-run equilibrium
AD will shift to the left to restore long-run equilibrium

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