Multiple Choice
Use Figure: Macroeconomic Equilibrium. The figure shows four different macroeconomic equilibria for an economy. Which of the following can shift the macroeconomic equilibrium from point A to point D?
Figure: Macroeconomic Equilibrium
A) The money supply increases.
B) Federal income taxes increase.
C) Business taxes increase.
D) Discretionary government spending increases.
Correct Answer:
Verified
Correct Answer:
Verified
Q71: A decrease in the overall price level
Q72: The _ effect and the _ effect
Q73: In an economy where the only leakage
Q74: If an economy has no other leakages
Q75: In the upward-sloping range of the short-run
Q77: The _ effect does NOT explain the
Q78: Which of the following can lead to
Q79: Use Figure: Macroeconomic Equilibrium. The figure shows
Q80: When the government of a country injects
Q81: In the long run, why does an