A shift of the AD-curve to the right could be caused by
A) a decrease in taxes
B) a decrease in government transfer payments
C) an increase in money demand
D) a decrease in defense spending
E) both A and C
Correct Answer:
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Q16: The Keynesian AS-curve differs from the classical
Q17: The natural rate of unemployment is
A)always zero
B)the
Q18: The AS-curve is horizontal or very flat
Q19: In which of the following cases will
Q20: If factor markets were perfectly competitive, then
Q22: In the classical supply curve case, monetary
Q23: The AD-curve has a negative slope since
A)firms
Q24: In an AD-AS diagram with an upward-sloping
Q25: Expansionary monetary policy will increase nominal GDP
A)in
Q26: Assume investment is very interest sensitive and
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