Question and answer
Consider if the government instituted a 10 percent income tax surcharge. In terms of the AS/AD model, this change should have A. shifted the AD curve to the left B. shifted the AD curve to the
right C. made the AD curve flatter D. made the AD curve steeper
It all depends on what the government does with the money. If it spends it in addition to everything it is already spending, then, to first order, there is no change in the aggregate demand or aggregate supply curves. [ In reality, there is a second order effect associated with the spending multiplier for the government vs. the spending multiplier for the private sector. If the
government "destroyed" the money, either literally or using it to replace borrowing, then that would affect both the aggregate demand and aggregate supply curves (changes in money supply affect everyone.) This probably isn't the answer you wanted, but then, you didn't say what context you were using this model in. I tend to think in terms of the real economy and macroeconomics. Most student think in terms of their current course, without reference to reality or the rest of economics, and I don't know what course you are taking. ]
Get an answer
Original conversation
User: Consider if the government instituted a 10 percent income tax surcharge. In terms of the AS/AD model, this change should have A. shifted the AD curve to the left B. shifted the AD curve to the right C. made the AD curve flatter D. made the AD curve steeper

Weegy: It all depends on what the government does with the money. If it spends it in addition to everything it is already spending, then, to first order, there is no change in the aggregate demand or aggregate supply curves. [ In reality, there is a second order effect associated with the spending multiplier for the government vs. the spending multiplier for the private sector. If the government "destroyed" the money, either literally or using it to replace borrowing, then that would affect both the aggregate demand and aggregate supply curves (changes in money supply affect everyone.) This probably isn't the answer you wanted, but then, you didn't say what context you were using this model in. I tend to think in terms of the real economy and macroeconomics. Most student think in terms of their current course, without reference to reality or the rest of economics, and I don't know what course you are taking. ]
analhon1014|Points 60|

User: Aggregate demand management policies are designed most directly to A. minimize unemployment B. minimize inflation C. control the aggregate level of spending in the economy D. prevent budget deficits or surpluses

Weegy: D. prevent budget deficits or surpluses
danichix|Points 3|

User: Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model? A. An increase in government spending B. An increase in taxes C. A reduction in government spending D. No change in taxes or government spending

Weegy: A. An increase in government spending
Expert answered|andrewpallarca|Points 12724|

Question
Asked 6/26/2012 12:29:23 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
21,053,653 questions answered
Popular Conversations
Write the given sentence as an equation. Tim’s age in 7 years will be ...
Weegy: Write the given sentence as an equation. Tim s age in 7 years will be three times what it was 19 years ago. ...
5/24/2015 11:34:37 AM| 2 Answers
Passed in 1964, the ______________ outlawed racial discrimination in ...
Weegy: Passed in 1964, the CIVIL RIGHTS ACT outlawed racial discrimination in public accommodations. User: The ...
5/24/2015 11:17:34 PM| 2 Answers
The Sarbanes-Oxley Act of 2002 (SOX) was largely a response to-
Weegy: As a result of SOX, top management must individually certify the accuracy of financial information. User: A ...
5/25/2015 7:13:43 AM| 2 Answers
The increase of trade in the global exchange led to _____________. a. ...
Weegy: The increase of trade in the global exchange led to Inflation. User: Workers in Europe suffered because ...
5/24/2015 12:10:52 AM| 1 Answers
Which of the following statements describes Europe’s middle class ...
Weegy: They enjoyed a comfortable life describes Europe s middle class during the 1500s and 1600s. User: The price ...
5/24/2015 12:14:57 AM| 1 Answers
Weegy Stuff
S
L
Points 706 [Total 1236]| Ratings 2| Comments 686| Invitations 0|Offline
S
Points 544 [Total 552]| Ratings 1| Comments 534| Invitations 0|Offline
S
1
Points 484 [Total 876]| Ratings 1| Comments 474| Invitations 0|Offline
S
L
P
Points 256 [Total 2733]| Ratings 0| Comments 256| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
Points 248 [Total 8994]| Ratings 0| Comments 248| Invitations 0|Offline
S
1
L
L
Points 67 [Total 8250]| Ratings 0| Comments 67| Invitations 0|Offline
S
Points 60 [Total 80]| Ratings 0| Comments 60| Invitations 0|Offline
S
L
Points 56 [Total 3810]| Ratings 2| Comments 36| Invitations 0|Offline
S
L
1
R
Points 32 [Total 1319]| Ratings 0| Comments 32| Invitations 0|Offline
S
Points 14 [Total 14]| Ratings 0| Comments 14| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.