increases in taxes shifts aggregate demand to the left. In the short run this makes output...

increases in taxes shifts aggregate demand to the left. In the short run this makes output fall which makes the interest rates rise. Is it that correct？Why？

Expert Solution

Rahul Sunny answered 2 years ago

increases in taxes shifts aggregate demand to the left. In the short run this makes output...

increases in taxes shifts aggregate demand to the left. In the short run this makes output fall which makes the interest rates rise. Is it that correct？Why？

Aggregate demand shifts left when the government

Aggregate demand shifts left when the governmentSelect one: a. decreases taxes. b. cuts military expenditures c. creates a new investment tax credit d. None of the above is correct.

1) In the long run, the short-run aggregate supply curve shifts to eliminate any existing output...

1) In the long run, the short-run aggregate supply curve shifts to eliminate any existing output gaps. Depict the parallel shift of the short-run aggregate supply curve that occurs in the long run. 2) Following a reduction in consumer spending, in the long run, what is the value of real GDP in this economy?

Which of the following shifts aggregate demand to the left? a. an increase in the price...

Which of the following shifts aggregate demand to the left? a. an increase in the price level. b. an increase in net exports. c. Congress passes a new investment tax credit. d. households decide to save a larger fraction of their income.

Using the aggregate demand-aggregate supply diagram, briefly explain 1. the Short-Run and Long-Run effects (on output...

Using the aggregate demand-aggregate supply diagram, briefly explain 1. the Short-Run and Long-Run effects (on output and prices) of an Increase in money supply. 2. the Short-Rin and Long-Run effects (on output and prices) of a negative demand shock 3. how stabilizing monetary policy deal with an adverse supply shock. Course relate to Macroeconomics ch. 10 Introduction to Economic Fluctuations

Which of the following shifts the short-run, but not the long-run, aggregate supply right?

56. Which of the following shifts the short-run, but not the long-run, aggregate supply right? A. a decrease in the price level B. a decrease in the expected price level C. a decrease in the capital stock D. a decrease in the savings rate 57. Which of the following would cause prices and real GDP to rise in the short run? A. Short-run aggregate supply shifts right. B. Short-run aggregate supply shifts left. C. Aggregate demand shifts right. D. Aggregate demand shifts left.

Indicate what happens, in the short run, to the aggregate demand curve (shift right or left),...

Indicate what happens, in the short run, to the aggregate demand curve (shift right or left), real GDP (increase or decrease), and the price level (increase or decrease) in each of the following cases: a) The interest rate rises, b) Wealth falls, c) The dollar depreciates relative to foreign currencies, d) Households expect lower prices in the future e) Business taxes rise.

What is the immediate effect when the money supply increases? aggregate demand shifts right aggregate demand...

What is the immediate effect when the money supply increases? aggregate demand shifts right aggregate demand shifts left aggregate supply shifts right aggregate supply shifts left

1. How do shifts in aggregate demand lead to short run fluctuations? Explain and support your...

1. How do shifts in aggregate demand lead to short run fluctuations? Explain and support your answer with the adequate graph. Explain what happens in the AD-AS model if there is a negative supply shock such as an increase in the oil prices. What do you think are the causes of stagflation in an economy?

What shifts the short run aggregate supply curve? What is the shape of the long run...

What shifts the short run aggregate supply curve? What is the shape of the long run aggregate supply curve and why is it that way? What does potential output mean and what is happening when the economy is at potential output?

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increases in taxes shifts aggregate demand to the left. In the short run this makes output...

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increases in taxes shifts aggregate demand to the left. In the short run this makes output...

Aggregate demand shifts left when the government

1) In the long run, the short-run aggregate supply curve shifts to eliminate any existing output...

Which of the following shifts aggregate demand to the left? a. an increase in the price...

Using the aggregate demand-aggregate supply diagram, briefly explain 1. the Short-Run and Long-Run effects (on output...

Which of the following shifts the short-run, but not the long-run, aggregate supply right?

Indicate what happens, in the short run, to the aggregate demand curve (shift right or left),...

What is the immediate effect when the money supply increases? aggregate demand shifts right aggregate demand...

1. How do shifts in aggregate demand lead to short run fluctuations? Explain and support your...

What shifts the short run aggregate supply curve? What is the shape of the long run...