All natural resources are nonrenewable

Refer to Figure 4.3. All else equal, an increase in the government's budget deficit accompanied by a decrease in corporate taxes would cause which of the following shifts?

A) S1 to S2 and D1 to D2 B) S2 to S1 and D1 to D2 C) S1 to S2 and D2 to D1 D) S2 to S1 and D2 to D1

If the income multiplier is 4 and the equilibrium national income level is $5,000 . then a $20 increase in aggregate demand at every level of national income will cause

a. the aggregate demand curve to shift to the right and national income to increase by $20 b. the aggregate demand curve to shift to the left and national income to increase by $20 c. the aggregate demand curve to shift to the right and national income to increase by $80 d. the aggregate demand curve to shift to the left and national income to increase by $80 e. an $80 movement along the existing aggregate demand curve