Which of the following will decrease aggregate demand?
a. exports rising faster than imports
b. exports falling faster than imports
c. exports rising the same amount as imports
d. exports rising and imports falling
b
You might also like to view...
From a microeconomic perspective, the relatively low U.S. household saving rate contributes to an increasing inequality of wealth resulting from:
A. the higher saving rate of low-income households. B. the higher national saving rate. C. the lower saving rate of low-income households. D. the lower national saving rate.
The fact that individuals substitute away from a taxed activity creates _____
a. the excess burden of taxation b. the welfare cost of taxation c. deadweight loss of taxation d. all of the above e. a and b
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million. This firm should
a) divest itself of some of its capital b) issue more stock c) continue to operate as it is d) invest in new plant and equipment e) issue bonds
Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
A. a decrease in aggregate supply B. an increase in aggregate supply C. a decrease in aggregate demand D. an increase in aggregate demand