Multiple Choice
What happens to aggregate demand if people want to save more for retirement and the government raises taxes?
A) Aggregate demand shifts right.
B) Aggregate demand shifts left.
C) If people save more, aggregate demand shifts right; if the government raises taxes, aggregate demand shifts left.
D) If people save more, aggregate demand shifts left; if the government raises taxes, aggregate demand shifts right.
Correct Answer:

Verified
Correct Answer:
Verified
Q214: We know the theories that explain why
Q215: Suppose the economy is in long-run equilibrium.
Q216: What is the effect of a temporary
Q217: How does the aggregate demand and aggregate
Q218: Scenario 14-2<br>The economy is in long-run equilibrium.
Q220: Suppose the economy is in long-run equilibrium.
Q221: Which of the following explains why production
Q222: What are the implications of a depreciation
Q223: Figure 14-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt="Figure 14-1
Q224: Stagflation would result from the aggregate-supply curve