Everything Else Held Constant,a Decrease in Net Taxes Will Cause

question 22

Multiple Choice

Everything else held constant,a decrease in net taxes will cause the IS curve to shift to the ________ and aggregate demand will ________.

• A)right;increase
• B)right;decrease
• C)left;increase
• D)left;decrease

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Definitions:

Spencer

Refers to Herbert Spencer, a 19th-century philosopher known for his contributions to evolutionary theory and social philosophy.

Young

Being in the early stages of life, development, or existence; not old.

Hedonism

A philosophy or lifestyle focused on seeking pleasure and avoiding pain as the highest good or main goal of life.

Happiness

Happiness is a state of emotional well-being characterized by feelings of joy, satisfaction, contentment, and fulfillment.