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  3. Study Set
    Economics Study Set 1
  4. Exam
    Exam 22: Adding Government and Trade to the Simple Macro Model
  5. Question
    FIGURE 22-4 -Refer to Figure 22-4.The Rotation from AE<sub>0</sub> to AE<sub>1</sub> Could
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FIGURE 22-4 -Refer to Figure 22-4.The Rotation from AE0 to AE1 Could

Question 2

Question 2

Multiple Choice

  FIGURE 22-4 -Refer to Figure 22-4.The rotation from AE<sub>0</sub> to AE<sub>1</sub> could be caused by A) a higher net tax rate. B) a lower net tax rate. C) a balanced budget. D) lower government purchases. E) higher government purchases. FIGURE 22-4
-Refer to Figure 22-4.The rotation from AE0 to AE1 could be caused by


A) a higher net tax rate.
B) a lower net tax rate.
C) a balanced budget.
D) lower government purchases.
E) higher government purchases.

Correct Answer:

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