15. In the context of National Income Theory. which statement best describes the impact of an increase in the taxrate? a. The AE curve will whitt down and equilibrium national income will fall by The AE curve will thiit up and equilibrium national income will rise. E. The AE curve will pivot downward and equilibrium national income will rise. d. The Af curve will pivot downward and equilibrium national income will fall. 16. In the context of National income Theory, which statement best describes the impact of a fall In Government spending? a. The AE curve will whilt down and equilibrium national income will fall b. The AE curve will shift up and equilibrium national income will rise. C. The AE curve will pivot downward and equilibrium national income will rise. d. The AE curve will pivot downward and equilibrium national income will fall. 17. In the context of National income Theory, which statement is inaccurate with respect to consumption theor? a. Conwumption is a function of income b. Total consumption is comprised of induced and autonomoin consumption. c Autonomous comumption is dependent on the level of national income. d. Consumption is based on a fixed price level. 18. Which statement beit describes fiscal policy? Fiscal policy refers to tools oned by the central bank to influence coonomic activity; b. The government uses took such as the repo rate and reserve requirement in carrying out fiscal policy. The central bank wies focal policy to complement other economic policies of the government. d. Government spending and taxes are wied as tools of tical policy to influence economic outcomes 19. Which statement best describes monetary policy? a. Monetary policy refers to tools used by central bank to influence economic activity. b. The government uses tools such as the repo rate and reserve requirement in carrying out monetary policy. The central government uses monetary policy to complement other economic policies. d. Government spending and taxes are used as took of monetary policy to influence economic outcomes 20. Which of the following is not a tool of monetary policy? a. Reserve requirement b. Taxes c. Repo rate d. Open market operation 21. Which type of unemployment h as a recit of a recenion? a. Frictional Unemployment b. Structural Unemployment e. Seasonal Unemployment d. Cyclical Unemployment