A shift in the aggregate planned expenditure curve as a result of an increase in the price level results in
A) no movement along the aggregate demand curve and no shift in the aggregate demand curve.
B) an upward movement along the aggregate demand curve.
C) a downward movement along the aggregate demand curve.
D) a rightward shift in the aggregate demand curve.
E) a leftward shift in the aggregate demand curve.
B
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Deflation:
a. is often a result of increases in the money supply. b. is good for borrowers, but bad for lenders. c. is good for lenders, but bad for borrowers. d. cannot occur under a bimetallic standard.
If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
a. Taxing it could bring us closer to the efficient solution b. Subsidizing it could bring us closer to the efficient solution c. Neither a tax or a subsidy could bring us closer to the efficient solution d. None of the above is true.
Suppose Darby values a certain smart phone at $400 . Jake values the same smart phone at $300 . The pre-tax price of this smart phone is $250 . The government imposes a tax of $75 on each smart phone, and the price rises to $325 . The deadweight loss from the tax is
a. $150. b. $100. c. $50. d. $0.
The deadline for your research paper is tomorrow and you still need a day of work to complete the paper. Unfortunately, you are scheduled to work all day in the cafeteria. You can turn the paper in one day late for a 10 percent penalty or take the day off of work and turn the paper in by the deadline. Losing a day of wages will cost you $90. The marginal cost of turning the paper in on time is:
A. $90 in forgone wages. B. not getting to lounge around all day. C. 10 percent deducted from your final score. D. the 10% deduction in score and $90 in forgone wages.