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Homework answers / question archive / Use the graph below to answer the questions that follow
Use the graph below to answer the questions that follow. i Aggregate Demand F Price Level G AD 2 (20,30) AD1 "AD 3 Real GDP
a. A decrease in taxes. This results in a: O movement from point G to point F. O shift from AD1 to AD2. O shift from AD1 to AD3. O movement from point F to point G. b. Workers worry that they will see a reduction in the number of hours worked. This results in a: O movement from point F to point G. O movement from point G to point F. O shift from AD1 to AD 2 O shift from AD1 to AD3. c. The price level in the economy increases. This results in a: O shift from AD1 to AD3. O shift from AD1 to AD2. O movement from point F to point G. O movement from point G to point F.
d. Real interest rates in the economy increase. This results in a: O shift from AD1 to AD3. shift from AD1 to AD2 movement from point G to point F. movement from point F to point G. e. The expected rate of return on investments increases. This results in a: O movement from point F to point G. O shift from AD1 to AD3. O movement from point G to point F. shift from AD1 to AD2
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