Question

A. If the government decides to increase personal income tax to raise its tax revenue, what will be the impact on the economy?

1. Both the price level and the equilibrium level of real output will decrease
2. Both aggregate demand and aggregate supply will increase
3. Price level will increase, and total production will decrease
4. Price level will decrease, and total production will increase

B. If the AS curve shifts to the left as productivity decreases, it will result in a combination of....

1. Lower output, higher unemployment, and higher inflation
2. Lower output, lower unemployment, and lower inflation
3. Higher output, lower unemployment and lower inflation
4. Higher output, higher unemployment, and higher inflation

Answer 1

А 1

Б 1