An increase in government expenditure on goods and services leads to the
A) aggregate supply curve shifting rightward.
B) aggregate supply curve shifting leftward.
C) aggregate demand curve shifting rightward.
D) aggregate demand curve shifting leftward.
E) potential GDP increasing.
C
Economics
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A White House proposal to lower business taxes by increasing tax deductions is an example of
A) progressive taxation. B) contractionary fiscal policy. C) automatic stabilization. D) expansionary fiscal policy.
Economics
In the short-run, following the opening of trade
A. groups tied to declining sectors of the economy will suffer from lower returns. B. workers will suffer from lower wages, but landowners will benefit from higher rents. C. workers in the country can change jobs but will receive the same wage. D. gross output remains constant.
Economics