Give 4 examples of situations that would cause the DD-curve to shift to the left
What will be an ideal response?
Correct answers include any situations that involve:
(1 ) an decrease in government spending (e.g., decrease in military spending)
(2 ) an increase in taxes
(3 ) a fall in Investment demand
(4 ) a price increase, which would lower net export demand (assuming E and P stay constant)
(5 ) a fall in foreign prices (assuming E and P stay constant)
(6 ) an autonomous fall in consumption demand (as long as it is not entirely a change in import demand)
(7 ) a shift to demanding more foreign goods at the expense of domestic good demand
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Before the Great Depression of the 1930s, the majority of government spending took place at the ________ and after the Great Depression the majority of government spending took place at the ________
A) federal level; state level B) federal level; state and local levels C) state and local levels; federal level D) local level; federal level
The functional relationship between the trade balance and the real exchange rate is:
a. a negative, or decreasing, function. b. a positive, or increasing, function. c. a parabolic function. d. impossible to quantify because there are so many unknown variables.
Which is NOT a necessary condition for price discrimination to exist?
A. The firm must face a downward sloping demand curve. B. The firm must establish different prices to reflect marginal cost. C. The firm must be able to prevent resale of the product or service. D. The firm must identify buyers with different elasticities of demand.
Microeconomics
What will be an ideal response?