If the government were to increase income taxes, we would predict:
A. a downward movement along the aggregate demand curve.
B. a shift in aggregate demand to the right.
C. a shift in aggregate demand to the left.
D. an upward movement along the aggregate demand.
C. a shift in aggregate demand to the left.
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A decrease in the real money supply can result from:
A) increase in the nominal money supply or an increase in the price level. B) increase in the nominal money supply or a decrease in the price level. C) decrease in the nominal money supply or an increase in the price level. D) decrease in the nominal money supply or a decrease in the price level.
In the short-run macro model, a decrease in the money supply will
a. move the economy to the right along the aggregate expenditure line b. move the economy to the left along the aggregate expenditure line c. shift the aggregate expenditure line upward d. shift the aggregate expenditure line downward e. not affect the aggregate expenditure line