In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to fall, and
the IS curve to shift to the ________, everything else held constant. A) up; left
B) up; right
C) down; left
D) down; right
C
Economics
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The only way that consumption can be taxed is through a general sales tax
a. True b. False
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As bookings for his catering business began to increase, David raised his rates. Then he decided to take on even more bookings than he had before. Which of the following describes his labor supply curve?
a. U-shaped b. upward sloping c. downward sloping d. backward bending
Economics