Aggregate Demand

Front

When taxes decrease, consumption

Back

increases, so aggregate demand shifts right

Front

Consumption would decrease and aggregate demand would shift

Back

left in taxes increased

Front

Which of the following shifts aggregate demand to the right? An increase in the money supply, An increase in net exports at every exchange rate, An investment tax credit, All of the above are correct

Back

All of the above are correct

Front

Which of the following shifts aggregate supply to the right? A decrease in the money supply, Technology that increases the profitability of goods, the repeal of an investment tax credit, A decrease in the price level

Back

Technology that increases the profitability of goods

Front

When the government spends more, the initial effect is that

Back

aggregate demand shifts right

Front

Aggregate demand shifts left when the government

Back

Cuts military expenditures

Front

Aggregate demand shifts right when the government:
- Lowers personal income taxes
- Increases the money supply
- Repeals an investment tax credit

Back

All of the above are correct

Front

What causes aggregate demand to shift right?

Back

Government expenditures or the money supply increased

Front

If countries that imported from the US went into a recession, U.S. net exports would

Back

fall, making aggregate demand shift left

Front

If the dollar appreciates (increases in value) because of speculation or government policy, what happens to U.S. net exports and aggregate demand?

Back

Decrease and aggregate demand shifts left