1. Government Spending

Multiple Choice

1. Government Spending
2. Consumer Expectations
3. Degree of Excess Capacity
4. Personal Income Tax Rates
5. Productivity
6. National Income Abroad
7. Business Taxes
8. Domestic Resource Availability
9. Prices of Imported Products
10. Profit Expectations on Investments
Answer the question based on the accompanying list of items related to aggregate demand or
aggregate supply. Changes in which combination of factors best explain why the aggregate supply
curve would shift?

A) 1 and 2
B) 2 and 10
C) 3 and 6
D) 7 and 8