Refer to the above graph. Which factor will shift AS1 to AS2?
A. A decline in consumer confidence.
B. A rise in national income abroad.
C. An increase in government spending.
D. A reduction in business taxes.
Answer: D
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The social discount rate is an important component in net present value (NPV) calculations for public policies related to stock externalities, but economists do not agree on which value to use for this rate
Suppose a recent study reports that the NPV of a proposed carbon tax intended to reduce carbon dioxide emissions is positive, but the annual net benefits do not become positive until 2060. The authors of the study used a social discount rate of 2%. What can we say about the findings of the study if the research were repeated with a higher social discount rate? A) NPV would decline, and the annual net benefits would become positive after 2060. B) NPV would increase, and the annual net benefits would become positive before 2060. C) NPV would decline, and the annual net benefits would not change. D) The findings of the study would not change.
Which of the following statements is NOT true for a perfectly competitive firm?
A) A firm's demand curve is horizontal. B) The firm can influence its demand curve by advertising its product. C) The firm's demand curve is perfectly elastic. D) The market demand and supply curves determine the market price.
An investment bank is a financial institution that finances federal budget deficits at very low interest rates
a. True b. False Indicate whether the statement is true or false
Which of the following statements is most correct?
A. All financial intermediaries are insurance companies. B. All banks are financial intermediaries, but not all financial intermediaries are banks. C. Financial intermediaries must be public corporations. D. Financial intermediaries are government agencies.