Figure 12-3

-Refer to Figure 12-3.Suppose the aggregate demand curve is AD₁.All of the following events
Would bring the economy back to the natural rate of unemployment except

Question

Figure 12-3 -Refer to Figure 12-3.Suppose the aggregate demand curve is AD₁.All of the following events Would bring the economy back to the natural rate of unemployment except

Quizplus · Accepted Answer

The government ordering a one-time surcharge of 10% on individual income tax liabilities would decrease disposable income and aggregate demand, making it less likely for the economy to return to the natural rate of unemployment. The other options would increase aggregate demand, which could help bring the economy back to the natural rate of unemployment.

Figure 12-3 -Refer to Figure 12-3.Suppose the Aggregate Demand Curve Is AD1.

Figure 12-3 -Refer to Figure 12-3.Suppose the Aggregate Demand Curve Is AD₁.