Answer the question based on the following list of factors that are related to the aggregate demand curve.
Changes in which two of the factors in the list above would most likely cause a shift in aggregate demand due to a change in consumer spending?
A. 1 and 3
B. 2 and 4
C. 5 and 10
D. 8 and 9
B. 2 and 4
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In which zone does the total physical product reach it maximum value?
A. Increasing marginal return B. Negative marginal return C. Diminishing marginal return D. Decreasing total physical product
One important unintended consequence of the Smoot-Hawley Tariff Act was to:
a. lessen the severity of the Great Depression by increasing exports. b. provide the federal government with an effective tool for exercising monetary policy. c. increase the efficiency of domestic automobile production. d. increase the severity of the Great Depression by causing other countries to retaliate, and thus leading to a decline in exports. e. increase the U.S. government budget deficit by $15 million.
An abrupt depreciation of a currency whose value was fixed or managed by the government is referred to as
A. Revaluation. B. Devaluation. C. Appreciation. D. Depreciation.
If a nation trades with another nation in a foreign currency (such as some commodities sold that are priced in U.S. dollars), then, when nominal exchange rates change, the real effective exchange rate will:
a. change by more. b. change by less. c. change in exactly the same proportion. d. not change at all.