Question 1 (1 point) A decrease in government spending shifts _____ to the Quest
ID: 1222236 • Letter: Q
Question
Question 1 (1 point)
A decrease in government spending shifts _____ to the
Question 1 options:
AD, right.
AD, left.
AS, right.
AS, left.
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Question 2 (1 point)
which of the following would result in a higher price level of the economy with increased output levels in the short run?
Question 2 options:
increase in incomes taxes
decrease in the money supply
decrease in the interest rate
appreciation of the real exchange rate
Question 11 (1 point)
An activist response to a recession would involve a shift in
Question 11 options:
AD.
short-run AS.
long-run AS.
none of the above.
Question 13 (1 point)
Which of the following is a step on the growth diamond?
Question 13 options:
modern financial system
effective management
non-predatory government
all of the above
AD, right.
AD, left.
AS, right.
AS, left.
Explanation / Answer
1 A decrease in government spending shifts _____ to the= AD to left as per the contractionary fiscal policy
2. increase in income tax. as there will be more disposable income in conumer hand so tax has to ncrease.
11. short run AS will be shifted as due to recession. as people will not have money to buy the supply will be much affected.the purchasing power will go down and so as interest rate.
13. the answer will be al of the above. all these factors required for a growth in dimoand market.