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.
21,938,845 questions answered
Popular Conversations
An adjective clause may modify a(n) ...
Weegy: A pronoun is a word that takes the place of a noun.
8/28/2015 7:47:06 AM| 3 Answers
The US assisted on the side of the resistance movement in the Afghan ...
Weegy: C. reduce Soviet presence in the region. User: Who did the United States support in the Soviet-Afghan ...
8/28/2015 8:32:26 AM| 2 Answers
_________ were non-European places in the world that European ...
Weegy: A. ecological imperials User: Social Darwinism was used to justify all of the following ...
8/28/2015 12:19:11 PM| 2 Answers
Read the following sentence. Decide if the verb is used as ...
Weegy: Terry is running up the hill. Up the hill is used as adverb. User: Identify the type of subordinate ...
8/28/2015 12:19:01 PM| 2 Answers
Weegy Stuff
S
P
C
L
P
L
1
P
P
1
P
1
P
L
P
R
Points 1204 [Total 11557]| Ratings 7| Comments 1134| Invitations 0|Offline
S
L
Points 767 [Total 1082]| Ratings 1| Comments 757| Invitations 0|Offline
S
1
L
L
Points 715 [Total 9183]| Ratings 3| Comments 675| Invitations 1|Online
S
L
L
P
1
Points 703 [Total 9276]| Ratings 2| Comments 683| Invitations 0|Offline
S
Points 491 [Total 717]| Ratings 1| Comments 481| Invitations 0|Online
S
Points 242 [Total 250]| Ratings 0| Comments 242| Invitations 0|Offline
S
Points 224 [Total 224]| Ratings 3| Comments 194| Invitations 0|Offline
S
Points 214 [Total 533]| Ratings 1| Comments 204| Invitations 0|Offline
S
Points 177 [Total 254]| Ratings 0| Comments 177| Invitations 0|Offline
S
Points 138 [Total 169]| Ratings 0| Comments 138| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.