Which of the following will shift the aggregate demand curve to the right?
A. Income taxes are raised.
B. Business managers become pessimistic about the future.
C. The government increases spending on education.
D. Consumers become pessimistic about the future.
Answer: C
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If the market demand curve has constant price elasticity of -1, the monopolist's price should approach infinity.
Answer the following statement true (T) or false (F)
An increase in labor productivity ________ the real wage rate and an increase in population ________ the real wage rate
A) raises; lowers B) raises; raises C) lowers; lowers D) lowers; raises
Since 1980, ________ are subject to reserve requirements
A) only commercial banks B) only the member institutions of the Federal Reserve C) only nationally chartered depository institutions D) all depository institutions
Due to Pigou's "defective telescopic faculty," a market economy is inefficient in allocating resources between the present and the future
a. True b. False Indicate whether the statement is true or false