Ask Question
BusinessBusiness
1 October, 18:03

If Congress passes a plan to cut the national debt in half, then:

1) there is no change in the AD curve as SRAS has decreased.

2) AD shifts right and output would increase.

3) AD shifts right and output would decrease.

4) AD shifts left and output would increase.

5) AD shifts left and the output would decrease.

+2
Answers (1)
  1. 1 October, 18:14
    0
    3) AD shifts right and output would decrease.

    Explanation:

    Aggregate demand (AD) is the total number of goods demanded in an economy in a period of time.

    If Congress decides to cut the National debt (or accumulated debt of the government) by half, this will make interest rates lower and will encourage investment from the private sector.

    The shifting to the right occurs when these components; consumption spending and investment spending increases due to cut in National debt.

    The AD curve will shift back to the left as these components decreases.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If Congress passes a plan to cut the national debt in half, then: 1) there is no change in the AD curve as SRAS has decreased. 2) AD shifts ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A municipal bond carries a coupon rate of 8.00% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 40% combined tax bracket? (Round your answer to 2 decimal places.)
Answers (1)
Delegating a job to another employee indicates that you
Answers (1)
Hartley Psychiatric, Inc., needs to purchase office equipment for its 2,000 drive-in therapy centers nationwide. The total cost of the equipment is $2,000,000.
Answers (1)
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 36 comma 000 parts is $ 110 comma 000 , which includes fixed costs of $ 50 comma 000 and variable costs of $ 60 comma 000.
Answers (1)
A stock has a beta of 0.9 and an expected return of 9 percent. A risk-free asset currently earns 4 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?
Answers (1)
New Questions in Business
Your employer contributes $60 a week to your retirement plan. assume you work for your employer for another 20 years and the applicable discount rate is 9 percent. given these assumptions, what is this employee benefit worth to you today?.
Answers (1)
Your business uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for uncollectible accounts had a credit balance of $ 1 comma 000.
Answers (1)
Suppose you have a choice of working full-time during the summer or attending summer school full-time. Summer tuition and books are $3,000. If you worked, you could make $5,000. Your rent is $1,000 for summer, regardless of your choice.
Answers (1)
Which phrase defines complementary goods
Answers (1)
If a company's current assets increase, what might we assume about their inventory levels? a) It increasedb) It decreasedc) It stayed the samed) We don't have enough information to decide
Answers (1)
Home » Business » If Congress passes a plan to cut the national debt in half, then: 1) there is no change in the AD curve as SRAS has decreased. 2) AD shifts right and output would increase. 3) AD shifts right and output would decrease.
Sign Up Forgot Password?