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5 how do lower taxes affect aggregate demand a they

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5.How do lower taxes affect aggregate demand?A)They increase disposable income, consumption, and aggregate demand.B)They reduce disposable income, consumption, and aggregate demand.C)they increase corporate investment and aggregate demand.D)They increase aggregate supply and thus increase aggregate demand as well.
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6.Potential GDP refers to the level of:
7.Changes in the price level:
8.Which of the following does NOTshift the short-run aggregate supply curve?
9.In the above figure, the economy is currently at pointA.Suppose that the money wagerate and the price level both fall by 10 percent. Firms will be willing to supply outputequal to:A)less than $16.0 trillion.B)$16.0 trillion.C)more than $16.0 trillion.D)Without more information, it is impossible to determine which of the aboveanswers is correct.
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10. In the above figure, which part corresponds to a destruction of part of the nation'scapital stock?MCQ Ans:
Price level(GDP deflator,2009 = 100)Quantity of realGDPdemanded(trillions of 2009dollars)Quantity of realGDP supplied(trillions of 2009dollars)1158.812.01109.411.010510.010.010010.69.09511.28.09011.87.01.Based on the table above,A)What is the equilibrium price level and real GDP?

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