Which one of the following factors will most likely cause an increase in aggregate demand?
a. An increase in net exports.
b. An increase in the real interest rate.
c. A decrease in net exports due to falling incomes abroad.
d. A technological development that decreases the cost of producing computer chips.
a
You might also like to view...
Explain how the aggregate demand and aggregate supply model can be made more dynamic
What will be an ideal response?
The market clearing price for gasoline is $1.50, but the maximum price that can be charged is $1.29. This is an example of
a) a price control that will lead to a surplus of gasoline on the market. b) a price floor that will lead to a shortage of gasoline on the market. c) a price ceiling that will lead to a shortage of gasoline on the market. d) a price floor that will lead to a surplus of gasoline on the market.
If you own a bond with a seven percent coupon rate and new bonds are paying five percent, what will happen to your bond's market price?
What will be an ideal response?
Between 1984 and 1989, the S&P 500 index more than ________, and between 1994 and 2000 it ________
A) doubled; tripled B) tripled; doubled C) doubled; decreased D) tripled; decreased