Which of the following would cause a leftward shift of aggregate demand? (a) An expectation of increased business regulation and restrictions on the use of technology causes a decrease in investment spending. (b) A decrease in interest rates causes an increase in investment spending. (c) A depreciation of the domestic currency on foreign exchange markets causes an increase in net exports. (d) A decrease in income tax rates results in more disposable income for households and increased consumer spending.

Which of the following would cause a leftward shift of aggregate demand? (a) An expectation of increased business regulation and restrictions on the use of technology causes a decrease in investment spending. (b) A decrease in interest rates causes an increase in investment spending. (c) A depreciation of the domestic currency on foreign exchange markets causes an increase in net exports. (d) A decrease in income tax rates results in more disposable income for households and increased consumer spending.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 6SQ

See similar textbooks

Similar questions

Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run aggregate supply curve? a) Prices rise, national income does not change B) Prices decrease, national income does not change C) Prices go up and national income goes down. D) Prices decrease and national income decreases. E) Prices rise, national income rises
Which of the following would cause the aggregate supply curve to increase... A) Energy prices such as gas and electricity have increased rapidly throughout the country. B) The government has reduced its spending by more than 10% over the last 2 years C) Consumers are more confident and spending more than before. D) Throughout the economy, workers are using better equipment and output per hour is rising.
Question 52 An increase in the amount of capital that firms purchase would initially shift: Question 52 options: a) aggregate supply to the right b) aggregate demand to the right c) aggregate demand to the left d) aggregate supply to the left
Stagflation is caused by an increase in cost-push inflation. The increase in costs can be caused by an increase in wages greater than the increase in productivity. excessive government regulations on business. an increase in taxes imposed on business. All of the above.
All else equal, which of the following will result in a recession in the short run? Select all the answers that apply. Select one or more: A leftward/upward shift in the short run aggregate supply curve A rightward shift in the aggregate demand curve A leftward shift in the aggregate demand curve A rightward/downward shift in the short run aggregate supply curve
Chose one from Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run aggregate supply curve? a) Prices rise, national income does not change B) Prices decrease, national income does not change C) Prices go up and national income goes down. D) Prices decrease and national income decreases. E) Prices rise, national income rises
QUESTION 10 A recession is a period during which aggregate output increases. True False
Comment, on the likely outcome with sufficient arguments? a) Impact on aggregate demand of the economy if imports are greater than exports.b) Impact on aggregate demand if the GDP of trading partner is increasing at a faster rate than that of India.c) Inflation rate in the country has reached 6.73%.
Pessimistic consumer and business confidence and decreased government spending are both associated with a rightward shift of the aggregate demand curve. a leftward shift of the aggregate demand curve. an upward movement along the aggregate demand curve. a downward movement along the aggregate demand curve.
At very low price levels there is a low level of production. Since increases in price levels encourage producers to increase output the Aggregate Supply curve tends to be very__________________ until the factors of production become scarce.
When the housing bubble burst in 2007, home prices fell and this eliminated a large fraction of many households’ home equity. The most likely outcome of this large decrease in the value of households’ assets is: a rightward shift in the aggregate demand curve a rightward shift in the aggregate supply curve a leftward shift in the aggregate demand curve a leftward shift in the aggregate supply curve
Which of the following would shift the long-run aggregate supply curve to the right?a. a decrease in the rate of inflationb. an increase in the growth rate of spendingc. a severe drought that decreases crop production and as a result raises pricesd. the invention of a new computer chip that makes assembly production twice as fast