-The Aggregate Demand Curve in the Figure Above Shifts Rightward

question 14

Multiple Choice

-The aggregate demand curve in the figure above shifts rightward if

• A) potential GDP increases.
• B) government expenditure decreases.
• C) the money wage rate falls.
• D) taxes are raised.
• E) the Reserve Bank lowers the interest rate.

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Definitions:

FICA-OASDI

Represents the Federal Insurance Contributions Act's Old-Age, Survivors, and Disability Insurance, a U.S. payroll tax that funds Social Security.

FICA-Medicare

The portion of the Federal Insurance Contributions Act tax that is allocated to Medicare, funding hospital insurance benefits for individuals who are elderly or disabled.

Payroll Register

A document that records detailed information about the compensation paid to employees, including wages, deductions, and net pay.

W-2 Forms

Official tax documents that employers send to employees and the IRS, reporting the employee's annual wages and the amount of taxes withheld from their paycheck.