Use the following graph to answer the next question.
Which of the following factors will shift AD1 to AD3?
A. A decrease in consumer wealth
B. An increase in expected returns on investment
C. A decrease in real interest rates
D. An increase in productivity
Answer: A
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a. total cost will decrease. b. fixed cost will decrease. c. average total cost will decrease. d. average total cost will increase. e. average variable cost will decrease.
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a. True b. False Indicate whether the statement is true or false
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A. a normal good; positive B. a normal good, negative C. an inferior good; positive D. an inferior good; negative