A. shift aggregate supply to the right
B. shift aggregate supply to the left
C. shift aggregate demand to the right
D. shift aggregate demand to the left
Related Mcqs:
- What is called the difference in the value of a nation’s imports over exports or exports over imports ?
A. Trade deficit
B. Trade simples
C. Both a & b
D. Not a nor b - When imports from a higher-cost supplier within a customs union replace imports from a lower-cost supplier outside the custom union, there exists ?
A. trade creation
B. trade diversion
C. dynamic welfare effects
D. comprehensive welfare effects - A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?
A. constant
B. inelastic
C. elastic
D. Unitary elastic - Tariff levels in advanced countries tend to be __________ tariff levels in developing countries?
A. higher than
B. equal to
C. lower than
D. there is no general pattern - Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?
A. decrease government spending Which the shifts the aggregate demand curve to the left
B. decrease taxes, which shifts the aggregate demand curve to the right
C. decrease taxes, which shifts the aggregate demand curve to the left
D. decrease government spending which shifts the aggregate demand curve to the right - According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
C. aggregate supply will increase will increase aggregate output will increase and the price level will increase
D. both aggregate supply and demand will increase will increase and the price level will increase - According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A. aggregate supply will increase , aggregate demand will decrease
B. aggregate supply will increase, aggregate output will increase and the price level will decrease
C. aggregate supply will increase aggregate output will increase and the price level will increase
D. both aggregate supply and demand will increase and the price level will increase - If demand is __________ then price cuts will _________ spending?
A. inelastic; increase
B. elastic; increase
C. elastic, decrease
D. none of the above - What is called a Tax on imports, exports ?
A. Drawback
B. Duty
C. Custom
D. Excise - If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing, which of the following is true regarding UK net exports ?
A. Net exports will rise
B. None of these answers
C. Net exports will fall
D. Net exports will remain unchanged
