Which of the following decreases aggregate demand?
A) The government increases taxes on both business and personal income.
B) Foreign incomes rise.
C) The quantity of money in the economy increases.
D) Households believe that the economy is headed for good times, with higher future incomes.
A
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The multiplier effect is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures
A) autonomous; consumption; induced B) autonomous; investment; induced C) induced; consumption; autonomous D) induced; investment; autonomous
The output an economy can produce with one unit of capital and one unit of labor is ________
A) indicated by the A variable in the Cobb-Douglas production function B) commonly referred to as labor productivity C) a variable that depends on how many units of capital and labor are available D) all of the above E) none of the above