In general, an increase in price could be caused by either: a. ...

[rosent76]

In general, an increase in price could be caused by either:
 a. an increase in demand or a decrease in supply.
  b. an increase in demand or an increase in supply.
  c. a decrease in demand or an increase in supply.
  d. an increase in demand or an increase in supply.

Question 2

Which of the following helps explain how the multiplier and crowding-out effect impact the size of the shift in aggregate demand from a tax change.
 a. Tax cuts stimulate consumer spending, earnings and profits rise, which further stimulates consumer spendingthe multiplier effect.
  b. The higher income leads to an increase in the demand for money, which tends to lead to higher interest rates.
  c. The higher interest rates make borrowing more costly and reduce investment spendingthe crowding-out effect.
  d. All of the above

[sarajane1989]

Answer to Question 1

a

Answer to Question 2

d