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.
Questions asked by the same visitor
The U.S. has limits on Chinese textile imports. Such limits are an example of A. a tariff B. a quota C. a regulatory trade restriction D. an embargo
Weegy: C. a regulatory trade restriction (More)
Question
Updated 168 days ago|1/13/2016 10:38:43 PM
1 Answer/Comment
The U.S. has limits on Chinese textile imports. Such limits are an example of a quota.
Added 168 days ago|1/13/2016 10:38:41 PM
This answer has been confirmed as correct, not copied, and helpful.
Confirmed by Andrew. [1/13/2016 11:57:27 PM]
25,657,650 questions answered
Popular Conversations
3x - 4y = 7 3x + 2y = -5 When the second equation is subtracted from ...
Weegy: -6y = 12 User: x + y = k x - y = k The solution to the system shown is _____. (0, k) (2, 2) (k, 0) Weegy: ...
6/29/2016 10:10:18 AM| 3 Answers
It's 3:34, what time was it 50 mins ago?
6/29/2016 2:36:26 AM| 2 Answers
What ending should this word have? deplor- able ible
Weegy: This word should end in -able. DEPLORABLE. User: What ending should this word have? predict- able ible
6/29/2016 6:35:29 AM| 2 Answers
The small, raised features on the surface of the tongue are ...
Weegy: The small, raised features on the surface of the tongue are called: papillae. User: Which of these is NOT a ...
6/29/2016 1:44:48 AM| 1 Answers
Human activity can affect the population size of another species ...
Weegy: ALL OF THE ABOVE. Human activity can affect the population size of another species through: ...
6/29/2016 2:20:39 AM| 1 Answers
Who was the director of the Manhattan Project, which created the ...
Weegy: A. The Marshall Plan provided them with the opportunity to emigrate to the United States and avoid trial. ...
6/29/2016 2:45:05 AM| 1 Answers
Weegy Stuff
S
P
L
Points 1090 [Total 1751] Ratings 2 Comments 1070 Invitations 0 Offline
S
Points 379 [Total 740] Ratings 2 Comments 359 Invitations 0 Offline
S
Points 172 [Total 247] Ratings 1 Comments 162 Invitations 0 Offline
S
L
P
P
P
Points 161 [Total 3704] Ratings 0 Comments 161 Invitations 0 Offline
S
Points 140 [Total 421] Ratings 0 Comments 140 Invitations 0 Offline
S
Points 127 [Total 179] Ratings 0 Comments 127 Invitations 0 Offline
S
P
1
Points 107 [Total 852] Ratings 3 Comments 57 Invitations 2 Offline
S
L
Points 87 [Total 4207] Ratings 0 Comments 87 Invitations 0 Offline
S
Points 40 [Total 50] Ratings 1 Comments 30 Invitations 0 Offline
S
Points 32 [Total 139] Ratings 0 Comments 32 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.