If a fall in the price level made people feel richer and initially increased aggregate expenditures by 20, the AD curve would:
A. shift by less than 20.
B. not shift at all.
C. shift by exactly 20.
D. shift by more than 20.
Answer: B
You might also like to view...
The Internet has made transactions between businesses (B2B trading) fast and easy. Any business in any location can access specialized knowledge, labor, and materials. It is likely that these virtual economic communities will result in
A) external economies of scale. B) internal economies of scale. C) consolidation of industries into a small number of powerful firms. D) suppression of innovations and collusive behavior, driving up prices. E) government intervention and regulation.
In the contemporary United States, labor productivity has been growing at approximately
a. 1.5 percent per year b. 2.0 percent per year. c. 2.6 percent per year. d. 3.9 percent per year.
Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X ? M = ?$500; depreciation = $200; transfer payments = $800, net domestic product is _____.
a. $5,500
b. $5,700
c. $6,200
d. $6,400
e. $6,900
Restaurants will add high-price food items to the menu to lure diners to choose foods just below the high-price items. These items generally have the highest profit margin. This is an example of:
A. choice architecture. B. enlightened self-interest. C. price discrimination. D. irrational behavior.