What would be the effect on aggregate demand ad as a

19. What would be the effect on aggregate demand ( AD ) as a result of an increase in business tax rates,
combined with a decrease in consumer confidence?
a. AD would increase.
b. AD could either increase or decrease, depending on which change was of a greater magnitude.
c. AD would decrease.
d.
e.
AD would stay the same.
None of the above
20. If Alice's taxes fell by $10 000, other things being equal, which of the following statements about her
consumption is accurate?

21. Why did Malthus’s predictions NOT was not realized for most of the developed world?
22. Which of the following groups of people would be included in the official unemployment rate?
23. Under what circumstances might the unemployment rate overestimate the true extent of
unemployment?
a. when many part-time employees would like to work full-time, but are unable to get the
additional work
b. when people become discouraged and stop looking for work
c. when people falsely claim that they are actively seeking work in an attempt to receive
unemployment benefits
d.
e.
when employees increase the number of hours that they work overtime
None of the above
24. Lindsay has finished her diploma in marketing and has just started looking for work. What kind of
unemployment is she facing?
6