A tax rate cut, increase in government purchases, and creating an investment tax credit would shift:
a. only the aggregate demand curve
b. only the aggregate supply curve.
c. both the aggregate supply and aggregate demand curves.
d. neither the aggregate supply nor the aggregate demand curve.
c
You might also like to view...
If the reserve ratio is 4 percent, the money multiplier is equal to 25
Indicate whether the statement is true or false
The relationship between marginal revenue and elasticity is
A) when demand is elastic, marginal revenue is positive and when demand is inelastic, marginal revenue is negative. B) whenever the elasticity is positive, marginal revenue is positive. C) whenever the elasticity is negative, marginal revenue is positive. D) when demand is elastic, marginal revenue is negative and when demand is inelastic, marginal revenue is positive. E) that total revenue equals zero at the quantity for which the demand is unit elastic.