Which of the following increases aggregate demand and shifts the AD curve rightward?
A) a fall in the price level
B) an increase in the quantity of money and a resulting fall in the interest rate
C) predictions of a recession that lead to expectations of lower future income
D) an increase in the exchange rate that makes imports less expensive
B
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If businesses buy fewer capital goods, and nothing else changes, then total expenditures on U.S. goods and services will decrease. And if total expenditures decrease, then __________ will decrease; consequently, the __________ curve will shift __________
A) aggregate demand (AD); AD; rightward B) short-run aggregate supply (SRAS); SRAS; leftward C) aggregate demand (AD); AD; leftward D) interest rates; AD; leftward E) prices; AD; rightward
For which of the following workers would the substitution effect be more likely to outweigh the income effect of an increase in wage?
A. Air traffic controller B. Marketing manager C. Waitress D. Dentist
The argument that supply of apartments is inelastic in the short run is based on the idea that
A. it takes time to build new apartments. B. it is costly to move to a different location. C. landlords will fix up many new apartments when there are small changes in rent. D. people will change apartments quickly when there are small changes in rent.
For years, your neighbor insisted she had no desire to own a computer. Recently, however, she purchased one and says she did so because all her relatives have computers and she wants to exchange e-mail with them. Your neighbor's behavior is an example of
A) a switching cost. B) the impact of negative market feedback. C) limited-pricing behavior. D) a network effect.