The March 2000 "tech bubble" burst caused the aggregate demand curve to shift to the left by ________
A) causing an upward spike in the real interest rate
B) reducing autonomous spending by households and businesses
C) reducing government spending on high-tech equipment
D) all of the above
E) none of the above
B
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A decrease in people's disposable income
A) increases saving and decrease consumption. B) increases saving. C) increases investment demand. D) decreases saving. E) increases consumption.
An advantage of monetary policy over fiscal policy is the:
A. decisions are made by experts who are independent of political pressures. B. decisions are made by politicians, not experts in finance, banking, and monetary policy. C. decision makers are under political pressures. D. decision makers cannot change and enact policy quickly.
Exhibit 9-1 A monopolistic competitive firm
?
As presented in Exhibit 9-1, the short-run profit-maximizing output for the monopolistic competitive firm is:
A. zero units per day. B. 200 units per day. C. 400 units per day. D. 600 units per day.
Fiscal policies are
A. less effective when the exchange rate is flexible and the economy is open. B. more effective when the exchange rate is flexible and the economy is closed. C. less effective when the exchange rate is fixed and the economy is open. D. less effective when the exchange rate is flexible and the economy is closed.