Which of the following will shift the aggregate demand curve to the right?
A. The government reduces purchases to balance the budget.
B. Consumers become more optimistic about the future.
C. Foreign economies fall into recession, reducing their demand for domestic exports.
D. Income taxes are raised.
Answer: B
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Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:
A. longer life expectancies. B. higher rates of infant mortality. C. higher material standards of living. D. higher rates of literacy.
The telephone industry operates under TELRIC pricing for access
Indicate whether the statement is true or false
A perfectly inelastic demand is one in which the:
A. demand curve is perfectly vertical. B. demand curve is perfectly horizontal. C. measured elasticity is exactly 1. D. response to a change in price is immediate.
Approximately two decades after a "baby boom," one could expect: a. production to change from an interior point to a point along the production possibilities curve. b. a movement along the production possibilities curve from one point to another
c. an outward shift of the production possibilities curve along both axes. d. an inward shift of the production possibilities curve.