If the Government Increased Autonomous Net Taxes by $60 Million

question 2

Multiple Choice

If the government increased autonomous net taxes by $60 million and increased its own purchases by the same amount, we would expect the net effect of these actions to be

• A)an increase in aggregate demand, which is a rightward shift of the aggregate demand curve
• B)an increase in aggregate demand, which is a leftward shift of the aggregate demand curve
• C)a decrease in aggregate demand, which is a rightward shift of the aggregate demand curve
• D)a decrease in aggregate demand, which is a leftward shift of the aggregate demand curve
• E)to leave the aggregate demand curve unchanged

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Definitions:

Open Racism

The explicit and public expression of racist views and ideologies without any attempt to hide or mitigate the prejudice.

Antiwar Protests

Public demonstrations opposing military conflict, particularly those that gained prominence during the Vietnam War in the 1960s and 1970s.

Kent State

Refers to the Kent State shootings in 1970, where the National Guard opened fire on unarmed college students protesting the Vietnam War, killing four.

Invasion

An unwelcome intrusion into another's domain, typically referring to the entering of an army into a territory.