Which of the Following Policies Shifts the AD Curve the Farthest

question 31

Multiple Choice

Which of the following policies shifts the AD curve the farthest leftward?

• A)an increase in taxes of $10 billion
• B)a decrease in government expenditure of $10 billion
• C)a simultaneous increase in government expenditure of $10 billion and taxes of $10 billion
• D)a decrease in taxes of $10 billion
• E)an increase in government expenditure of $10 billion

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Definitions:

1-Iodo-1-Ethylcyclopentane

An organic compound characterized by the presence of an iodine atom and an ethyl group attached to a cyclopentane ring.

Reactivity

The tendency of a substance to undergo chemical reaction, either by itself or with other materials, and to release energy.

Compounds

Compounds are chemical substances made up of two or more different chemical elements, bonded together in a fixed proportion by chemical bonds.

Transition State

A high-energy, intermediate state of the reactants during a chemical reaction that leads to the formation of products.