Aggregate Demand Shifts Right When the Government

question 42

Multiple Choice

Aggregate demand shifts right when the government

• A)raises personal income taxes.
• B)increases the money supply.
• C)repeals an investment tax credit.
• D)All of the above are correct.

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Definitions:

Wage Gap

The wage gap is the difference in earnings between two groups of workers, often based on gender, ethnicity, or age.

High-Skill

Referring to jobs or workers that require advanced training, education, or experience.

Low-Skill

Pertaining to jobs or tasks requiring minimal specialized training or education, often associated with lower wages.

International Trade

The exchange of goods and services between countries, enabling economies to specialize and grow through the trade of products they produce efficiently.