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25 May Question Posted at 13:58h in Essay Writing Services by

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<pclass=”msonormal” style=”box-sizing: border-box; margin-left: 36pt; text-indent: -36pt;”>101. An increase in business taxes would tend to:

  1. A) increase aggregate demand and decrease aggregate supply.
  2. B) increase aggregate demand and increase aggregate supply.
  3. C) decrease aggregate demand and increase aggregate supply.
  4. D) decrease aggregate demand and decrease aggregate supply.

Answer: D

Type: A Topic: 3 Level: Moderate E: 191, 195 MA: 191, 195

  1. A decrease in business taxes will tend to:
  2. A) increase aggregate demand but not change aggregate supply.
  3. B) increase aggregate supply but not change aggregate demand.
  4. C) increase aggregate demand and increase aggregate supply.
  5. D) decrease aggregate supply and decrease aggregate demand.

Answer: C

Type: A Topic: 3 Level: Moderate E: 194 MA: 194

  1. Which would most likely increase aggregate supply?
  2. A) an increase in the degree of excess capacity C) a decrease in subsidies for businesses
  3. B) a decrease in the prices of resources D) a decrease in net exports

Type: A Topic: 3 Level: Moderate E: 194-195 MA: 194-195

  1. A rise in prices of imported resources will cause aggregate:
  2. A) supply to increase. B) demand to increase. C) supply to decrease. D) demand to decrease.

Type: A Topic: 3 Level: Moderate E: 196 MA: 196

  1. Which would be considered to be one of the factors that shift the aggregate supply curve? A change in:
  2. A) consumer spending. C) government regulation.
  3. B) net export spending. D) profit expectations on investment projects.

Type: A Topic: 3 Level: Moderate E: 195-196 MA: 195-196

  1. Which would increase aggregate supply?
  2. A) an increase in business regulation C) an increase in business subsidies
  3. B) a decline in productivity D) a decrease in the capital stock

Type: A Topic: 3 Level: Moderate E: 194-195 MA: 194-195

  1. If the U.S. dollar depreciates in value relative to foreign currencies, then this will:
  2. A) increase aggregate supply.
  3. B) decrease aggregate supply.
  4. C) decrease aggregate demand.
  5. D) cause a movement along the aggregate supply curve.

Type: A Topic: 3 Level: Moderate E: 194-195 MA: 194-195

  1. If the U.S. dollar appreciates in value relative to foreign currencies, then this will:
  2. A) increase aggregate supply.
  3. B) decrease aggregate supply.
  4. C) increase aggregate demand.
  5. D) cause a movement along the aggregate supply curve.

Type: A Topic: 3 Level: Moderate E: 194-195 MA: 194-195

  1. If the U.S. dollar appreciates in value relative to foreign currencies, then this will:
  2. A) increase aggregate demand and aggregate supply.
  3. B) decrease aggregate demand and aggregate supply.
  4. C) decrease aggregate demand and increase aggregate supply.
  5. D) increase aggregate demand and decrease aggregate supply.

Type: A Topic: 3 Level: Moderate E: 194-195 MA: 194-195

  1. If the U.S. dollar depreciates in value relative to foreign currencies, then this will:
  2. A) increase aggregate demand and aggregate supply.
  3. B) decrease aggregate demand and aggregate supply.
  4. C) decrease aggregate demand and increase aggregate supply.
  5. D) increase aggregate demand and decrease aggregate supply.

Type: A Topic: 3 Level: Moderate E: 190, 195 MA: 190, 195

  1. If personal income taxes and business taxes increase, then this will:
  2. A) increase aggregate demand and aggregate supply.
  3. B) decrease aggregate demand and aggregate supply.
  4. C) decrease aggregate demand and increase aggregate supply.
  5. D) increase aggregate demand and decrease aggregate supply.

Type: A Topic: 3 Level: Moderate E: 190, 195 MA: 190, 195

  1. If personal income taxes and business taxes decrease, then this will:
  2. A) increase aggregate demand and aggregate supply.
  3. B) decrease aggregate demand and aggregate supply.
  4. C) decrease aggregate demand and increase aggregate supply.
  5. D) increase aggregate demand and decrease aggregate supply.

Type: A Topic: 3 Level: Moderate E: 191, 195 MA: 191, 195

  1. A decrease in business taxes will most likely result in a(n):
  2. A) decrease in aggregate demand and aggregate supply.
  3. B) increase in aggregate demand and aggregate supply.
  4. C) decrease in aggregate demand and increase in aggregate supply.
  5. D) increase in aggregate demand and decrease in aggregate supply.

Use the following to answer questions 114-116:

Type: A Topic: 3 Level: Difficult E: 194-195 MA: 194-195

  1. Refer to the above list. Changes in which combination of factors best explain why the aggregate supply curve would shift?
  2. A) 1 and 2 B) 2 and 10 C) 3 and 6 D) 7 and 8

Type: A Topic: 3 Level: Difficult E: 191 MA: 191

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