Decreases in autonomous spending cause rightward shifts of the aggregate demand and supply curves

The impact of an increase in the wage rate on labor supply will be represented by ________, assuming all else equal

A) a rightward shift of the labor supply curve. B) a leftward shift of the labor supply curve. C) an upward movement along the labor supply curve. D) a downward movement along the labor supply curve.

If the federal government decreases its expenditures on goods and services by $10 billion and decreases taxes on personal incomes by $10 billion, which of the following will occur in the short run?

A) The federal budget deficit will increase by $10 billion B) The federal budget deficit will decrease by $10 billion C) Aggregate income will remain the same D) Aggregate income will increase by up to $10 billion E) Aggregate income will decrease by up to $10 billion