Which of the following statements is correct?
A) An increase in people's expected future income shifts the aggregate demand curve leftward.
B) A tax increase shifts the aggregate demand curve leftward.
C) An increase in potential GDP shifts the aggregate demand curve rightward.
D) An increase in exports shifts the aggregate demand curve leftward.
E) The higher the price level, the larger is the quantity of real GDP demanded.
B
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If the marginal propensity to save (MPS) increases, the multiplier
A) decreases. B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC). C) increases. D) stays the same.
When the production function is represented by Y = NA, labor productivity is represented by which of the following expressions?
A) 1/A B) NA C) A/Y D) Y/A E) none of the above