Which of the following would qualify as an aggregate demand shock?

A. A seasonally expected increase in oil prices
B. An anticipated tax cut
C. An unexpected reduction in consumer confidence
D. An unexpected increase in oil prices


Answer: C

Economics

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a. True b. False Indicate whether the statement is true or false

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Assume that two firms in an oligopoly market are unable to collude. Once the Nash Equilibrium is reached a. it is always possible for one firm to increase its profits by producing more output. b. the two firms are jointly earning monopoly profit

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Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:

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Economics