Which of the following is an example of a shock that could shift the IS curve to the right?

A. A decrease in taxes

B. A decrease in consumption

C. A decrease in investment

D. An increase in real interest rates

Expert Solution

The right answer is option A, that is, a decrease in taxes. When the taxes decreases it implies that people will have more income to spend on the consumption of goods and services, therefore, decrease in taxes will increase the aggregate demand in the economy which will shift the IS curve to the right.

Rahul Sunny answered 2 years ago

Which of the following will shift the SRAS curve to the right?

Which of the following will shift the SRAS curve to the right? A. an increase in the price of oil B. an increase in the minimum wage C. an increase in the actual price level D. an increase in immigration from other countries

Which of the following will cause the aggregate demand curve to shift to the right ?...

Which of the following will cause the aggregate demand curve to shift to the right ? a. A decrease in household wealth b. A decrease in the price level c. Consumer expectations of higher future income d. An increase in the interest rate Which of the following events would most likely caused the increase in aggregate demand a. An increase in interest rates b. An increase in household wealth c. A decrease in consumer confidence d. A decrease in the...

Which of the following would shift the demand curve for cars to the right? Group of...

Which of the following would shift the demand curve for cars to the right? Group of answer choices An increase in the federal funds rate An increase in discount lending by the Fed to banks An increase in home mortgage interest rates An increase in the unemployment rate over the NAIRU originally proposed the use of government spending to stimulate the economy in the 1930s, during the Great Depression. Group of answer choices John Maynard Keynes Franklin Delano Roosevelt Albert...

Which of the following will shift the aggregate supply curve to the right? Instructions: You may...

Which of the following will shift the aggregate supply curve to the right? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. a substantial increase in the price of oil a two-fold increase in the manufacturing wages as a result of a law passed by the government a decrease in business taxes an increase in the overall productivity in the economy...

7. Which one of the following would shift the long-run aggregate supply curve to the right?...

7. Which one of the following would shift the long-run aggregate supply curve to the right? (a) increased international trade (b) an increase in the price level (c) a reduction in immigration (d) an increase in government spending (e) a higher minimum wage 8. To explain the long-run trend of rising output and prices observed in the U.S. : (a) the LRAS must increase over time, while the AD must remain constant. (b) the LRAS must remain constant over time,...

What does not shift the supply curve of the product A to the right?

What does not shift the supply curve of the product A to the right?A) A rise in the price of AB) An increase in the price of H, a complement in AC) A fall in the price of H, a substitute of A

Which of the following factors shift primarily the demand curve and which factors shift primarily the...

Which of the following factors shift primarily the demand curve and which factors shift primarily the supply curve: per capita income changes; new technologies; population growth; tastes and preferences; price inputs used in production; prices of other goods consumed; prices of substitute goods in production?

Which statement is correct about a shift in the aggregate supply curve to the right and productivity growth?

Which statement is correct about a shift in the aggregate supply curve to the right and productivity growth? Assume that aggregate demand remains unchanged. Select the best answer When the SRAS curve shifts to the right, at every price level, producers supply a lower quantity of real GDP. A higher level of productivity shifts the aggregate supply curve to the right. Real growth in GDP per capita is always faster than productivity growth

What is the oxyhemoglobin dissociation curve, and what factors affect the curve to shift right or...

What is the oxyhemoglobin dissociation curve, and what factors affect the curve to shift right or left. Additionally, explain what type of effect stored (banked) blood have on the oxyhemoglobin dissociation curve. please use more than 350 words

Which of the following will shift the demand curve for a good? A change in the...

Which of the following will shift the demand curve for a good? A change in the cost of materials used to make the good None of these answers A change in the price of the good A change in per unit taxes on sellers A change in the technology used in producing the good 2) Suppose consumer incomes decrease. In the market for a normal good, at the original equilibrium price this would create: Excess supply An increase in production...

Question