Solved

Refer to the Figure Given Below

Question 14

Multiple Choice

Refer to the figure given below. Refer to the figure given below. In the above figure, AD<sub>1</sub> and AS<sub>1</sub> represent the original aggregate demand and aggregate supply curves, respectively.AD<sub>2</sub> and AS<sub>2</sub> show the new aggregate demand and aggregate supply curves.The change in aggregate supply from AS<sub>1</sub> to AS<sub>2</sub> could be caused by: A) a reduction in the price level. B) an increased availability of entrepreneurial talent. C) an increase in business taxes. D) the real-balances effect, interest-rate effect, and foreign-trade effect. In the above figure, AD1 and AS1 represent the original aggregate demand and aggregate supply curves, respectively.AD2 and AS2 show the new aggregate demand and aggregate supply curves.The change in aggregate supply from AS1 to AS2 could be caused by:


A) a reduction in the price level.
B) an increased availability of entrepreneurial talent.
C) an increase in business taxes.
D) the real-balances effect, interest-rate effect, and foreign-trade effect.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q9: Refer to the list below.Which two factors

Q10: If the price level increases in Canada

Q11: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the

Q12: The following table is for a particular

Q13: Aggregate demand decreases and real output falls

Q15: The foreign-trade effect causes the aggregate demand

Q16: Which of the following statements correctly states

Q17: Which of the following would not shift

Q18: Refer to the diagram given below. <img

Q19: An increase in imports (independently of a