During the 2020 campaign, Joe Biden proposed raising income taxes on those earning more than $400,000 per year and raising corporate taxes from about 21 percent to 28 percent. Consider the aggregate demand-aggregate supply diagram below, which represents the macroeconomy. Suppose the market is initially at an equilibrium at point A. What effect will a tax increase have on this graph? Question 76 options: 1.The long-run aggregate supply curve will shift to the left. 2.The aggregate demand curve will shift to the right. 3.The aggregate demand curve will shift to the left. 4.The short-run aggregate supply curve will shift to the left.
Question 76
During the 2020 campaign, Joe Biden proposed raising income taxes on those earning more than $400,000 per year and raising corporate taxes from about 21 percent to 28 percent.
Consider the aggregate
Question 76 options:
1.The long-run
2.The aggregate demand curve will shift to the right.
3.The aggregate demand curve will shift to the left.
4.The short-run aggregate supply curve will shift to the left.
Question 77
During the 2020 campaign, Joe Biden proposed raising income taxes on those earning more than $400,000 per year and raising corporate taxes from about 21 percent to 28 percent.
Consider the market for money illustrated in the figure below. Assume the market initially is in equilibrium at point A. What effect will the tax increase have on the market for money?
Question 77 options:
1.Interest rates could increase or decrease.
2.Interest rates will be unaffected.
3.Interest rates will increase.
4.Interest rates will decrease
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