Consider the Following News Headline: "Finance Minister Announces That the Federal

question 49

Multiple Choice

Consider the following news headline: "Finance minister announces that the federal income-tax rate will rise by three percentage points." Assuming that aggregate output is demand-determined,what will be the effect of this action,all other things equal,on the AE function and equilibrium national income?

• A)The AE function will shift down parallel to itself,and equilibrium national income will fall.
• B)The AE function will rotate upward (become steeper),and equilibrium national income will rise.
• C)The AE function will rotate downward (become flatter),and national income will fall.
• D)The AE function will shift up parallel to itself,and equilibrium national income will rise.
• E)There will be no change in the AE function or in equilibrium national income.

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Definitions:

Method Headings

The part of a method declaration in programming that specifies the method name, return type, and any parameters.

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A blueprint for creating objects in object-oriented programming, consisting of methods and attributes.

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A method used in Java to add an event listener to a window, allowing the program to respond to window events, such as opening or closing.

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A class in the Java Swing library for creating and managing windows.