Which of the following would have opposite effects on aggregate demand?
An increase in taxes; an increase in government transfers Open market purchases by the Federal Reserve; a reduction in the discount rate An increase in exports; an increase in investment An increase in the reserve requirement; a desire by people to hold larger cash balances
Which of the following would increase the aggregate supply of an economy?
A tax increase. A purchase by the Federal Reserve of securities on the open market. A reduction in energy supplies. Technological advancements.