Solved

A Cut in Government Spending, a Decrease in Income Abroad

Question 53

Multiple Choice

A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate:


A) demand to shift rightward.
B) demand to shift leftward.
C) supply to shift rightward.
D) supply to shift leftward.
E) supply and aggregate demand to both shift equally inward.

Correct Answer:

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