An increase in confidence will cause
A. AS to decrease (move up and to the left).
B. AD to decrease (move to the left).
C. AS to increase (move down and to the right).
D. AD to increase (move to the right).
Answer: D
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Which of the following is NOT an important factor affecting economic growth?
A) the rate of growth of capital B) the rate of saving C) the rate of growth in labor productivity D) the growth of leisure
Everything else held constant, a decrease in the cost of production ________ aggregate ________
A) increases; demand B) decreases; demand C) increases; supply D) decreases; supply
Refer to the above figure. In the absence of a subsidy,
A) Qd would be demanded and QM would be supplied. B) the price Pd would be charged and quantity QM demanded. C) the quantity Qo and price Po would prevail in the market. D) None of the above is correct.
If people in the United States buy more of a foreign good when its price falls, then
A. the exchange rate will increase when there is inflation. B. the demand curve for U.S. dollars will slope up. C. the supply curve for U.S. dollars will slope up. D. fixed exchange rates will make foreign exchange markets more efficient.