A decrease in taxes on business investments will decrease aggregate supply.Group of answer choicesTrueFalse

Tax increases on business income slow down the rate of increase in aggregate demand by decreasing __________.

Assume the marginal propensity to consume is 0.8. How will a decrease in taxes of $100 billion and a decrease in government spending of $100 billion affect aggregate demand?ResponsesAggregate demand will decrease by $900 billion.Aggregate demand will decrease by $900 billion.Aggregate demand will decrease by $500 billion.Aggregate demand will decrease by $500 billion.Aggregate demand will decrease by $400 billion.Aggregate demand will decrease by $400 billion.Aggregate demand will decrease by $100 billion.Aggregate demand will decrease by $100 billion.Aggregate demand will not change.

f aggregate demand falls short of current output, _____________.a.business firms will cut production to keep from accumulating inventories.b.business firms will expand production to keep from accumulating inventories.c.business firms will cut production to build up inventories.d.business firms will expand production to build up inventories.

Which of the following will decrease SRAS (short run Aggregate Supply), and increase ADGroup of answer choicesdecrease in wages, increase in consumptiondecrease in physical capital stock, increase in net exportsadvancement in technology, decrease in government purchasesdecrease in prices, increase in quantity

A decrease in aggregate demand will cause a decrease in Blank______.Multiple choice question.real GDPinflationthe money supplygovernment spending