2017/DSEN29 Price level Xp. Ds Aggregate output ich of the ° .gram above shows the aggregate demand curves and long run aggregate supply curves of an ec0n0m¥- whi following best explains the above changes? ‘A. adecrease in people's desire tolsave Ban enhancement in production technology Can increase in national income of the economy's trading partners D. an increase in government subsidy on private research and development Gopbsexso ch ofthe following policies would most likely lead to a drop in aggregate output? ame 'A. The government bought bonds from the public and raised the tax allowance at the s . By The government sold bonds tothe public and reduced transfer payment to the poor at the same time. C._ The government reduced required reserve rato and raised the progressvity of income tax atthe same time, D._ The government increased the discount rate and lowered profits tax rate at the same time, 2017/DSE//40 In his 2016-17 Budget, the Financial Secretary proposed to waive business registration fees for 2016-17. At the same time, the personal basic tax allowance was raised from $120.00 to $132 000. Which of the following best illustrates the effect of the above changes on the price and output levels? —— A 8. Pricelevel yeas, LRAS; PriceJevel —> SRAS ' SRAS, ay ‘AD Qo ‘Output feEaeT Aliz2018/pse126 short run aggregate supply curve will shift i gate supply curve wil shift fo the ight ‘A. the government relaxes the importation quota of foreign workers. B. the government increases the profits tax rate. C. the central bank sells government bonds fo the public, an inerease in the price level. Irn the 2018/DsEA27 : Which of the following will lead to an increase-in both prige level ga i ng will lead to an increase in both pricélevePand aggrégate output in the short run? sani ‘ aa : an improvement in production technology. an increase inthe oil price, yY There is a decrease in money suppl ‘There is a decrease in the desire to save. Dopp uurves and the long run 2o18/psEa2s ‘The diagram below shows the aggregate demand (AD) curves short un aggregate supply (SRAS) € aggregate supply (LRAS) curve of an economy. The economy initially operates at Eo. Price level ¢ Output level and the long-run Ifthe government gives $10 000 cash to every citizen every year, the short-run equilibrium will be at equilibrium will be at___. 2018/DSE/V38 Suppose there is a reduction in the basi allowance ofthe salaries tax in an economy. Which ofthe fllowing can offset its effect on aggregate demand? : |A. People’s desire to save increases. B. The price level decreases. . C._ The central bank carries out an open market sale of government bonds. 7 1D. The required reserve ratio in the banking system decreases. \ feEaeT Aliz