Exhibit 14-4 Aggregate supply and demand curves
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In Exhibit 14-4 which of the following is not consistent with a shift in the aggregate demand curve from AD1 to AD2?
A. a decrease in consumer spending
B. an increase in investment
C. an increase in government spending
D. an increase in net exports
Answer: A
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When a nation has no funds to finance economic development, how can it acquire the needed funds? Is the country a net lender or a net borrower?
What will be an ideal response?
How does an increase in income affect the market of iPads (normal good)?
a. The demand curve for iPads to shift to the right b. The demand curve for iPads to shift to the left c. The supply curve for iPads to shift to the right d. The supply curve for iPads to shift to the left
Which of the statements below does not describe a demand curve that is unit elastic?
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Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of
a. frictional unemployment created by sectoral shifts. b. frictional unemployment created by efficiency wages. c. structural unemployment created by efficiency wages. d. structural unemployment created by sectoral shifts.