PLEASE!!! SOMEONE HELP ME WITH THIS…ITS MY HOMEWORK AND I DID 7 OF EM I DONT UNDERSTAND THESE THOUGH…PLEASE!
- An alternative to the Bush tax plan would be to send each American a check for $300. The goal of this alternative plan is to increase aggregate demand in order to close the gap between actual and potential output. Which of the following scenarios will lead to the largest increase in short-run stimulus?
A. A family uses the tax cut to save for its children’s college education.
B. A family uses the tax cut to pay off its credit card debt.
C. A family uses the tax cut to buy U.S. Savings Bonds.
D. A family uses the tax cut to take an unplanned vacation to Disney World.
Suppose that this graph depicts the U.S. economy at the time of the news article. Use the graph and information from the article to answer the following questions. (LRAS stands for long-run aggregate supply, SRAS stands for short-run aggregate supply, and AD stands for aggregate demand.)
5.3. Which of the following would successfully close the gap between actual and potential output?
A. A decrease in short-run aggregate supply
B. An increase in aggregate demand
C. None of these answers are correct
D. An increase in long-run aggregate supply
Suppose that this graph depicts the U.S. economy at the time of the news article. Use the graph and information from the article to answer the following questions. (LRAS stands for long-run aggregate supply, SRAS stands for short-run aggregate supply, and AD stands for aggregate demand.)
5.2. The primary goal of the Bush tax plan is to:
A. Shift the AD curve to the right and the LRAS curve to the left
B. Shift the LRAS curve to the right
C. Shift the AD curve to the right
D. Shift the SRAS and AD curves to the left
ad=aggregate demand
lras-long run aggregate supply
sras-short run aggregate supply