Which of the following would shift the aggregate demand curve to the left?
A) an increase in the money supply
B) a cut in federal income taxes
C) an expected decrease in future income
D) an increase in the price level
C
Economics
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Monetary policy has a ________ effect on aggregate demand in a(n) ________ economy, and fiscal policy has a ________ effect on aggregate demand in a(n) ________ economy
A) stronger; closed; weaker; open B) stronger; open; weaker; open C) weaker; open; weaker; open D) weaker; closed; weaker; closed
Economics
In the ISLM framework, a rising price level causes
A) the equilibrium interest rate to rise. B) the equilibrium level of income to fall. C) desired saving to rise. D) the LM curve to shift to the right.
Economics