Figure 9.1 shows three aggregate demand curves. A movement from curve AD1 to curve AD2 could be caused by a(n)
A) increase in the money supply. B) decrease in government spending.
C) increase in taxes. D) increase in the price level.
A
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The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the producer surplus?
A) $3,000 B) $1,000 C) $10 D) $600
The difference between the total amount that people would have been willing to pay for the total quantity produced and consumed in a market and what they actually pay at the market clearing price is called
A) production excess. B) excess demand. C) market surplus. D) consumer surplus.
Measured as a share of national income, government expenditures on income transfers during the last 70 years have
a. grown rapidly. b. declined substantially. c. been virtually unchanged. d. increased throughout much of that period, but they have declined substantially since 1980.
Recessionary gaps lead to falling inflation and falling unemployment.
Answer the following statement true (T) or false (F)