Disposable personal income: a. includes personal income taxes. ...

[itsmyluck]

Disposable personal income:
 a. includes personal income taxes.
  b. excludes personal income taxes.
  c. excludes transfer payments.
  d. is income spent for personal items such as homes and cars.

Question 2

Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then:
 a. aggregate demand will decrease.
  b. aggregate demand will increase.
  c. long-run aggregate supply will increase.
  d. long-run aggregate supply will decrease.

[javimendoza7]

Answer to Question 1

b

Answer to Question 2

b