__________ would cause a rightward shift of the aggregate demand curve.
a. A decrease in the expected price level
b. A decrease in foreign income
c. An increase in expected income
d. A decrease in real wealth
e. An increase in the value of the dollar
c. An increase in expected income
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Ultimately, quotas ________ the ability of foreign countries to buy the domestic country's exports and therefore ________ wealth
A) increase; create B) increase; destroy C) reduce; create D) reduce; destroy
A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean?
A) Firms use an input combination that minimizes cost and maximizes output. B) Each firm produces up to the point where all scale economies are exhausted. C) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. D) Production occurs at the lowest average total cost.
A Lorenz curve summarizes the information provided by a Gini coefficient
Indicate whether the statement is true or false
The Ricardian proposition that international trade will benefit any country ("gains from trade") as long as the world terms of trade do not equal its autarkic relative prices is a straightforward and powerful concept
Nevertheless, it is impossible to demonstrate empirically. Why?