A decline in the stock market, which makes consumers poorer, would cause
A) the aggregate demand curve to shift to the right.
B) the aggregate demand curve to shift to the left.
C) a movement down and to the right along the aggregate demand curve.
D) a movement up and to the left along the aggregate demand curve.
B
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From 1996 to 1998, the fall in energy prices could be used
A. to explain why productivity growth increased. B. to indicate improvements in workforce quality. C. to indicate the lack of investment. D. to explain why productivity growth fell.
In a monopolistically competitive market, entry into the industry
A. is relatively easy. B. is blocked. C. is as difficult as entry into a monopoly. D. is difficult due to extensive government regulation.
The political process by which fiscal policy is made
A. is slow and results in a long time lag for fiscal policy. B. is efficient in reaching a decision within a year. C. is relatively rapid, contributing to the effectiveness of fiscal policy. D. requires only that the president approve changes to the budget, a decision that takes several months.
A nation’s citizens often dislike the economy’s distribution of income. Explain two methods for creating a more equal distribution of income.
What will be an ideal response?