Which set of changes will definitely shift the aggregate demand (AD) curve to the right?
A) Business taxes decline and foreign real national income rises.
B) Businesses become pessimistic about future sales and the U.S. dollar depreciates.
C) Wealth increases and individuals expect higher (future) incomes.
D) a and b
E) a and c
E
You might also like to view...
Prices are a critical component of the market system
Indicate whether the statement is true or false
What was the World Bank designed to do?
(a) Serve as a long-term lender (b) Serve as a short-term lender (c) Make both short and long-term loans (d) Make grants-in-aid, but not to be a lending institution
A common error of business managers is to blame inflation on
a. consumer spending. b. rising wages. c. rising prices. d. rising interest rates. e. rising unemployment.
At one time, sea lions were depleting the stock of steelhead trout. One idea to scare sea lions away from the Washington coast was to launch fake killer whales, which are predators of sea lions. The cost of making the first whale is $16,000 ($5,000 for materials and $11,000 for the mold). The mold can be reused to make additional whales, and so additional whales cost $5,000 each. Based on these numbers, the average total cost of making five fake killer whales would be:
A. $11,000. B. $36,000. C. $7,200. D. $5,000.