Figure 9.1 shows three aggregate demand curves. A movement from curve AD0 to curve AD1 could be caused by a(n)
A) decrease in government spending. B) decrease in the money supply.
C) decrease in the price level. D) decrease in taxes.
D
Economics
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An economic system in which ritual, habit, and custom dictate most economic and social behavior
a. command economy b. traditional economy c. market economy d. free enterprise economy
Economics
Which of the following changes in taxes would lead to the greatest increase in consumption?
a. a $20,000 decrease in taxes, if MPC equals 0.5 b. a $12,000 decrease in taxes, if MPC equals 0.75 c. a $15,000 decrease in taxes, if MPC equals 0.6 d. a $30,000 decrease in taxes, if MPC equals 0.25
Economics